Eli Lilly and Company’s (LLY) shares declined 13.5% in the past three months. Though demand for its popular tirzepatide drugs, Mounjaro and Zepbound, remains massive, their sales were hurt due to inventory issues in the third quarter. This led the shares of the company to drop following third-quarter results after a powerful first-half performance.Meanwhile, the overall drug and biotech sector has also done poorly in the past three months after Trump announced the appointment of Robert F. Kennedy Jr., a vac ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Eli Lilly (LLY 0.67%) and Novo Nordisk (NVO 2.34%) are two of the most valuable healthcare stocks in the world, largely due to their successful diabetes and weight loss medications. They are also big players in the burgeoning GLP-1 weight loss market, and investors are paying large premiums for these stocks based on their potential.But what's intriguing is that the potential may be even bigger than what analysts and investors are expecting. And that's because there may be even greater benefits associated wi ...

Pharmaceutical stocks represent an interesting prospect — while it is incredibly tough to separate the wheat from the chaff, picking a winner early on is more or less a ticket to outsized returns.There’s just one problem — most established pharmaceutical companies have mature business models in stable industries. While that’s perfectly fine in terms of stability, stocks like these rarely see big moves to the upside. Barring the recent surges seen from the advent of weight loss drugs like GLP-1 agonists, it’ ...

Stock Performance - Eli Lilly closed at $773 29, marking a +1 07% move from the previous day, outperforming the S&P 500's daily loss of 1 11% [1] - Over the last month, Eli Lilly's shares decreased by 4 79%, surpassing the Medical sector's loss of 6 22% but falling behind the S&P 500's loss of 1 7% [1] Earnings and Revenue Expectations - The company is anticipated to report an EPS of $5 48, a 120 08% rise compared to the same quarter of the previous year [2] - Revenue is expected to be $14 06 billion, showing a 50 3% escalation compared to the year-ago quarter [2] Analyst Estimates and Revisions - Recent changes to analyst estimates reflect evolving short-term business trends, with positive revisions indicating a good sign for the company's business outlook [3] - The Zacks Consensus EPS estimate has moved 1 78% higher over the past month [5] Valuation Metrics - Eli Lilly currently trades with a Forward P/E ratio of 31 82, expressing a premium compared to the industry average of 12 34 [6] - The company's PEG ratio is 1 59, higher than the industry average of 1 26 [6] Industry Context - The Large Cap Pharmaceuticals industry, part of the Medical sector, carries a Zacks Industry Rank of 191, placing it within the bottom 24% of over 250 industries [7] - The Zacks Industry Rank shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

INDIANAPOLIS, Jan. 7, 2025 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) will attend the 43rd Annual J.P. Morgan Healthcare Conference, Jan. 13-16, 2025. David A. Ricks, Lilly chair and CEO, will participate in a fireside chat on Tuesday, Jan. 14 at 5:15 p.m. Eastern time. A live audio webcast will be available on the "Webcasts & Presentations" section of Lilly's Investor website at https://investor.lilly.com/webcasts-and-presentations. A replay of the presentation will be available on this same website ...

Core Viewpoint - Eli Lilly's stock performance is significantly influenced by its weight loss drugs, Zepbound and Mounjaro, which have driven substantial revenue growth and share price appreciation, leading to speculation about a potential stock split in the future [2][8][11]. Company Performance - Eli Lilly's stock has increased approximately 160% since the approval of Mounjaro, currently trading over $700 per share, with a peak of around $960 in September [3][4]. - The company has reported double-digit revenue growth in recent quarters, largely attributed to the popularity of its weight loss portfolio [8]. Stock Split Speculation - Investors are curious if Eli Lilly will initiate a stock split, especially given its historical openness to such actions, having completed four in the past, the last being in 1997 [9]. - The recent decline in Lilly's share price may prompt management to consider a stock split to attract more investors and highlight the ongoing potential of its weight loss drugs [11]. Market Context - The obesity drug market is projected to reach $130 billion by the end of the decade, positioning Eli Lilly favorably alongside competitors like Novo Nordisk [13]. - Despite trading near record highs, Lilly's stock price is significantly higher than its peers, which may deter some investors [15].

Investment Trends - Billionaire investor Philippe Laffont of Coatue Management manages a fund worth $26.9 billion as of September, with a focus on tech and healthcare stocks [2] - Coatue Management significantly reduced its stake in Nvidia by 26%, selling 3.6 million shares during the third quarter [3] - Coatue increased its stake in Novo Nordisk more than ninefold to $39 million and raised its stake in Eli Lilly by 20% to $220 million during the third quarter [5] Novo Nordisk - Novo Nordisk's weight management drug Wegovy reduced patients' weight by 12.4% compared to a placebo in clinical trials [7] - The company is developing CagriSema, a next-generation weight management treatment combining semaglutide and an amylin analog [7] - Total semaglutide sales grew 41% year over year to $19.8 billion in the first nine months of 2024 [13] - Novo Nordisk's CagriSema completed a phase 3 trial and could earn FDA approval in 2025 [16] - Despite recent stock price declines, Novo Nordisk trades at 27.9 times forward-looking earnings expectations, supported by strong demand for its GLP-1 drugs [17] Eli Lilly - Eli Lilly's tirzepatide, approved for diabetes under the brand name Mounjaro in 2022 and for obesity as Zepbound in 2023, reduced patients' weight by a placebo-adjusted 17.8% after 72 weeks in trials [8][14] - The company is testing retatrutide, a GLP-1/GIP agonist that also acts on glucagon receptors, which showed a placebo-adjusted weight reduction of 22.1% after 48 weeks in a phase 2 trial [9] - Retatrutide's phase 3 study began in May 2023 and is expected to conclude in January 2026 [10] - Tirzepatide sales exceeded $11 billion in the first nine months of 2024, despite being on the market for only two years [18] - Eli Lilly's stock trades at about 60 times forward-looking earnings estimates, making it vulnerable to any setbacks in tirzepatide or retatrutide development [20] Market Outlook - The anti-obesity drug market is projected to grow from $6 billion in 2023 to $105 billion by 2030 [11] - The GLP-1 drug market is expected to remain highly competitive between Novo Nordisk and Eli Lilly, with tirzepatide likely to overtake semaglutide in the next year or two [16]

Core Insights - Novo Nordisk's shares fell nearly 20% after disappointing results from a phase 3 study of its weight-loss drug candidate, CagriSema, but this does not significantly alter the company's long-term prospects [1][13] - Eli Lilly continues to innovate, with its weight loss drug Zepbound receiving FDA approval for treating obstructive sleep apnea, which is expected to boost sales further [2][10] - Both Eli Lilly and Novo Nordisk are leaders in the pharmaceutical industry, particularly in weight loss therapies, and are expected to maintain growth [9] Eli Lilly - Eli Lilly's sales grew by 20% year over year to $11.4 billion in the third quarter, driven by Zepbound and Mounjaro [10] - The company has a strong pipeline, including promising weight loss candidates like retatrutide and a once-weekly insulin product, as well as developments in oncology and rare diseases [5][6] - Eli Lilly has tripled its dividend over the past decade, indicating strong financial health and commitment to returning value to shareholders [11] Novo Nordisk - CagriSema showed a mean weight loss of 22.7% after 68 weeks, outperforming semaglutide alone and placebo, although it fell short of management's expectations of 25% [7][13] - Novo Nordisk holds a 33.9% share of the diabetes care market, an increase from 33.3% the previous year, and is diversifying its product offerings [8] - The company is also developing therapies for rare blood disorders, indicating a broadening of its therapeutic focus beyond GLP-1 drugs [14]

Industry Overview - The healthcare industry has shifted focus from COVID vaccines to weight loss as the next major theme [2] - Eli Lilly and Novo Nordisk are leading players in the GLP-1 agonist market for diabetes treatment and chronic weight management [2] - The weight loss market represents a significant growth opportunity, with Lilly's market value exceeding Pfizer, Moderna, and J&J combined [14] - Novo Nordisk has become the most valuable company in Europe, surpassing LVMH Moët Hennessy [14] Company Comparison - Eli Lilly's Zepbound demonstrated superior weight loss results compared to Novo Nordisk's Wegovy, with 20% vs 14% average body weight reduction [4] - Zepbound showed better performance in secondary endpoints, with 32% of patients losing one-quarter of body weight compared to 16% for Wegovy [4] - Novo Nordisk's CagriSema achieved 22.7% average weight loss, slightly better than Zepbound but with only 40% of patients reaching the 25% target [5][19] - Novo Nordisk's stock experienced a significant 28% drop following the CagriSema trial results [10] Eli Lilly's Business Profile - Eli Lilly has a diverse medical portfolio beyond weight loss, including treatments for cancer, plaque psoriasis, Alzheimer's disease, and eczema [6][11] - The company's weight loss operation is fast-growing and expected to bolster revenue and profit base [16] - Eli Lilly is well-positioned to gain momentum in the weight loss market while maintaining leadership in the pharmaceutical industry [17] Novo Nordisk's Business Profile - Novo Nordisk's Ozempic is FDA-approved for diabetes treatment, while Wegovy is primarily prescribed for obesity care [15] - The company faced challenges with its latest weight loss candidate, CagriSema, which showed only marginal improvement over Zepbound [19] Investment Perspective - Eli Lilly is considered a superior investment opportunity compared to Novo Nordisk due to its progress in weight loss and diverse medical portfolio [1][12] - The company is viewed as a clear-cut winner in the pharmaceutical sector for long-term investors [13][17]