In the US, Wells Fargo reports better margin trends, Berenberg upgrades Eli Lilly
In the United States, Wells Fargo shares rose after the bank’s chief financial officer Michael Santomassimo reported better-than-expected net interest margin trends since the start of the third quarter. Meanwhile, Berenberg analysts upgraded Eli Lilly shares from “hold” to “buy,” pointing not only to the company’s obesity drugs but also to its acquisitions in the field of new drug development, CNBC Top News reports.
Wells Fargo metric
At the Barclays Global Financial Services Conference, Santomassimo said Wells Fargo’s net interest margin since the start of the quarter had been roughly flat or down by one basis point compared with the 2.43% level in the second quarter. Previously, the bank’s management had expected the metric to fall by 3–4 basis points.
Net interest margin reflects the difference between a bank’s income from loans and its deposit costs. CNBC notes that this is a slight outperformance of previous expectations, but it is important given that Wells Fargo failed to meet expectations for this metric in nine of the past 10 quarters.
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Eli Lilly’s bet on new developments
Berenberg believes the market is underestimating the potential of Eli Lilly’s deals financed by revenue from GLP-1 class drugs. According to analysts’ estimates, since the start of 2026 the company has allocated about $60 billion to more than 25 deals to acquire companies and license experimental drugs and technologies, including gene editing.
Among the deals, Berenberg highlighted the acquisition of AtaiBeckley in the field of psychedelic drugs for treating mental disorders, as well as Centessa, which is working on therapies for sleep disorders, including narcolepsy. Eli Lilly closed the AtaiBeckley deal last week: the upfront payment amounted to $2.8 billion, while additional payments may reach $1 billion if specified milestones are achieved. For Centessa, the company paid $6.3 billion upfront and may pay up to another $1.5 billion if the company’s drugs receive regulatory approval by specified deadlines.
