Leerink analyst Seamus Fernandez believes Eli Lilly's 2016 guidance on January 5 is likely to disappoint relative to consensus expectations. Current estimates do not fully factor in reduced currency benefits, Fernandez tells investors in a research note. Beyond 2016, the analyst sees opportunity for "substantial operating leverage" as Lilly's diabetes franchise accelerates and the oncology franchise broadens. The outcome of the EXPEDITION 3 study of solanezumab in mild Alzheimer's will be known by the end of 2016, which is likely to have at least a 10%-20% impact on Lilly shares, the analyst contends. He sees a "wide range of attractive upside scenarios" for the stock and upped his price target to $95 from $93. Fernandez keeps an Outperform rating on Lilly.

Shares of sleep apnea device makers ResMed (RMD) and Inspire Medical (INSP) are moving in opposite directions after Eli Lilly (LLY) announced topline results of the SURMOUNT-OSA Phase 3 clinical trials, showing tirzepatide injection significantly reduced the apnea-hypopnea index, or AHI, compared to placebo, achieving the primary endpoints of the studies. After initially moving... To see the rest of the story go to thefly.com. See Story Here

Shares of sleep apnea device makers ResMed (RMD) and Inspire Medical (INSP) are slipping in early trading after Eli Lilly (LLY) announced topline results of the SURMOUNT-OSA phase 3 clinical trials that showed tirzepatide injection significantly reduced the apnea-hypopnea index, or AHI, compared to placebo, achieving the primary endpoints of the studies. SURMOUNT-OSA Study 1 evaluated tirzepatide, which Lilly identifies as "the only approved GIP and GLP-1 treatment for chronic weight management, commercialized as Zepbound in the U.S. and Mounjaro in some global markets outside the U.S.," in adults with moderate-to-severe obstructive sleep apnea, or OSA, and obesity who were not on positive airway pressure, or PAP, therapy for 52 weeks. In Wednesday pre-market trading, ResMed shares are down about 3% to $180, while Inspire shares have slipped about 1% to $220.