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Eli Lilly (LLY) stock extended gains on Wednesday after the pharmaceutical behemoth announced a new direct-to-consumer (DTC) collaboration with CVS Health (CVS).
The press release said this team-up aims to improve patient access, affordability, and pharmacy support for Eli Lilly's blockbuster weight-loss treatments, Zepbound and Foundayo.
At the time of writing, Eli Lilly shares are up more than 35% versus their April low.
Why the CVS Deal Is Bullish for Eli Lilly Stock
Under the expanded partnership, CVS has agreed to integrate Lilly’s weight-loss therapies into its connected care network.
Eligible patients will now be able to connect 24/7 with MinuteClinic clinicians, view transparent cash-pay and reimbursed pricing via the CVS Health app, and collect prescriptions across 9,000 local CVS retail pharmacies without recurring membership fees.
For LLY stock, the CVS collaboration represents a high-impact commercial victory.
By removing distribution friction and lowering telehealth visit costs to just $29, it’s set to broaden retail access, boost prescription fill rates, and solidify the giant’s already dominant footprint in the rapidly expanding obesity treatment market.
Note that Eli Lilly currently pays a dividend yield of 0.6% as well.
What Else Is Driving LLY Shares Higher Today?
Eli Lilly shares are also rallying on Aug. 5 because the company posted better-than-expected Q2 earnings and issued impressive guidance for the full year.
Overall revenue soared 48% year-on-year, spearheaded by massive demand for its diabetes therapy Mounjaro ($9.94 billion) and weight-loss drug Zepbound ($4.93 billion).
Lilly’s adjusted earnings per share (EPS) also came in at a robust $8.38, despite absorbing $3.03 a share in acquired research and development charges.
Crucially, management expects that strength to persist, raising its full-year guidance to a range of $85 billion to $87 billion.
In short, a powerful combination of raised guidance and improved pharmacy distribution reaffirms LLY’s strong growth trajectory for 2026 and beyond.
How Wall Street Recommends Playing Eli Lilly
Lilly has already joined the trillion-dollar club this year, but Wall Street believes it could rip higher in the second half of 2026.
The consensus rating on LLY shares remains at “Strong Buy,” with the mean price target of $1,292 indicating potential upside of nearly 12% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
