Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Eli Lilly (LLY) - Eli Lilly currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2][3] - The stock has shown a price increase of 0.24% over the past week, while the Zacks Large Cap Pharmaceuticals industry has decreased by 0.13% during the same period [5] - Over the last quarter, Eli Lilly's shares have increased by 27.11%, and over the past year, they have gained 36.13%, significantly outperforming the S&P 500, which moved 3.09% and 17.53% respectively [6] Trading Volume and Market Activity - Eli Lilly's average 20-day trading volume is 2,659,607 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 3 earnings estimates for Eli Lilly have been revised upwards, while 2 have been revised downwards, leading to an increase in the consensus estimate from $23.60 to $23.78 [9] - For the next fiscal year, 8 estimates have moved upwards with no downward revisions, indicating positive sentiment regarding future earnings [9] Conclusion - Given the strong performance metrics and positive earnings outlook, Eli Lilly is positioned as a solid momentum pick and should be considered for investment [11]

Core Insights - Eli Lilly and Nimbus Therapeutics have established a multiyear collaboration and exclusive licensing agreement aimed at developing an oral treatment for obesity and other metabolic diseases [1] Company Summary - Eli Lilly is focusing on expanding its portfolio in the obesity treatment market through this collaboration with Nimbus Therapeutics [1] - Nimbus Therapeutics is leveraging its expertise in drug development to partner with Eli Lilly for innovative solutions in metabolic diseases [1] Industry Summary - The collaboration highlights the growing interest and investment in treatments for obesity and metabolic diseases, which are significant health concerns globally [1] - The agreement reflects a trend in the pharmaceutical industry towards partnerships to accelerate drug development and bring new therapies to market [1]

Core Insights - Nimbus Therapeutics has signed a multi-year research and licensing agreement with Eli Lilly to develop AI-driven oral therapies for obesity and other metabolic diseases [1][3] - The agreement includes an upfront payment of $55 million from Eli Lilly to Nimbus, with potential milestone payments up to $1.3 billion if the drug is successfully developed and approved [1][3] - The trend of integrating AI in drug discovery aligns with the FDA's recent push to reduce animal testing [1][3] Company Developments - Nimbus previously licensed an AI-designed compound to Takeda Pharmaceutical in 2022, with a total deal value of up to $6 billion, which is currently undergoing late-stage clinical trials [1][3] - This collaboration marks the second partnership between Nimbus and Eli Lilly, following their previous agreement to develop an oral drug for cardiac metabolic diseases [4][5] - Nimbus, based in Boston, focuses on oral drug development across various fields, including cancer, inflammatory diseases, and metabolic diseases [4][5] Industry Trends - Global pharmaceutical companies are competing to develop oral weight-loss medications as alternatives to injectable drugs like Novo Nordisk's semaglutide (Wegovy) and Eli Lilly's tirzepatide (Zepbound) [2][4] - The weight-loss drug market is projected to exceed $150 billion in annual revenue by the early 2030s [2][4] - The collaboration aims to leverage Nimbus's AI technology for drug candidate selection while Eli Lilly contributes its expertise in metabolic diseases [2][4]

Group 1 - Nimbus Therapeutics has entered into a multi-year research and licensing agreement with Eli Lilly [1] - The focus of the collaboration is to develop artificial intelligence-driven new oral treatments for obesity and other conditions [1]

Group 1 - Demand for GLP-1 products remains strong, benefiting Eli Lilly significantly, leading to a total stock return of 34% [1] - Eli Lilly is positioned as a dominator in the industry due to the robust demand for its products [1] Group 2 - The article does not provide additional relevant content for this section [2][3]

整理 | GLP1减重宝典内容团队 Nimbus Therapeutics 宣布与礼来达成一项多年期研究合作及全球独家授权协议，双方将联合开发一种用于肥胖及其他代谢性疾病的全 新口服疗法。这一合作是在双方此前围绕 AMPK 靶点、面向心代谢疾病开展研究合作的基础上进一步深化，显示出礼来在代谢领域持 续加码、并积极拓展下一代技术路线的明确战略。 根据协议内容，Nimbus 将利用其以 AI 增强的计算化学和结构基础药物设计平台，推进一项处于早期阶段的小分子发现项目，直指肥 胖治疗领域长期存在的未满足需求。与当前以注射型多肽药物为主的减重方案不同，该项目聚焦口服小分子路径，被视为未来提升依从 性、扩大适用人群的重要方向。 礼来糖尿病与代谢研发负责人表示，Nimbus 在复杂靶点药物发现方面展现了卓越能力，此次合作将为礼来代谢疾病管线补充全新的创 新机制，进一步丰富其在肥胖治疗领域的技术储备。Nimbus 方面则指出，公司将 AI 驱动的预测模型与结构导向设计深度融合，已多 次在"难成药"靶点上成功交付高质量候选分子，此次与礼来的再次合作，有望加速将突破性口服疗法带给肥胖患者。 在商业条款方面，Nimbus 有资格 ...

Core Insights - Eli Lilly is on the verge of becoming the first pharmaceutical company to reach a market value of $1 trillion, having briefly touched this milestone in November before settling around $960 billion [1][9] Revenue Growth and Product Portfolio - The company's recent success is largely attributed to its weight loss drugs, particularly tirzepatide, marketed as Zepbound and Mounjaro, which have generated billions in annual revenue [2][6] - Lilly's diverse drug portfolio spans various treatment areas, providing reliable revenue growth and dividend payments, which are attractive to investors [4][5] - Following the approvals of Mounjaro in 2022 and Zepbound in 2023, sales of these drugs surged, contributing over $10 billion in revenue and resulting in a 54% increase in overall revenue for Lilly [6][7] Market Interest and Stock Performance - The combination of stable pharmaceutical revenue and high growth potential has led to a nearly 200% increase in Lilly's stock price over the past three years, reflecting strong investor interest [3][7] - The rising market value of Lilly indicates a significant level of investor confidence, although reaching a $1 trillion market cap does not inherently guarantee superior performance compared to companies with lower valuations [10]

Core Viewpoint - Analysts suggest that old economy stocks may thrive in 2026 as the market shifts focus from speculative assets to more traditional sectors [2][4]. Group 1: Market Predictions - A transition is expected in the first half of 2026 from speculative parts of the economy to the real economy, including sectors like transports, regional banks, housing, chemicals, and commodities [4]. - Financial stocks are highlighted, with Bank of America (BAC) recently closing at its highest since November 2006, indicating a potential deregulatory environment for financials [4]. - Mergers among regional banks are anticipated in 2026, reflecting a consolidation trend in the financial sector [4]. Group 2: Investment Opportunities - Alternative private capital stocks such as Apollo Global Management (APO) and Blackstone (BX) are favored, having been undervalued due to recent credit concerns [5]. - The healthcare sector remains strong, with companies like Eli Lilly (LLY) and Intuitive Surgical (ISRG) being noted for their resilience [5]. - The decline in Bitcoin prices suggests a shift towards real economy stocks, with Bitcoin currently well below its October high of $125,000 [5][6].

Core Insights - The medical sector is increasingly adopting artificial intelligence (AI), enhancing drug synthesis, device creation, and diagnostic accuracy [2][3] Group 1: Eli Lilly and Co. (LLY) - Eli Lilly focuses on cardiometabolic health, neuroscience, oncology, and immunology, which are high-growth areas with significant commercial potential [5] - Demand for LLY's GLP-1 drugs, Mounjaro and Zepbound, remains strong, contributing to robust sales in 2025 [6] - LLY is advancing its pipeline with an oral GLP-1 obesity pill, orforglipron, expected to launch next year [7] - Eli Lilly is collaborating with OpenAI for novel medicine discovery and invested $409 million in Genetic Leap for AI-driven drug discovery [7] - The company is building a supercomputer with NVIDIA to enhance its AI capabilities, with expected revenue and earnings growth rates of 22.3% and 41.3% respectively for the current year [8] - LLY has a return on equity (ROE) of 109.5%, significantly higher than the industry average of 37% [9] Group 2: Medtronic plc (MDT) - Medtronic is integrating AI into its solutions to improve patient care and operational efficiency, including an AI-powered surgical video management platform [10] - The GI Genius project enhances colorectal cancer detection, increasing survival rates by identifying polyps that may be missed [11] - Medtronic's partnerships leverage AI to optimize cardiac procedures and improve diagnostic precision, driving growth in the medtech sector [12] - The company has an expected revenue and earnings growth rate of 7.5% and 2.7% respectively for the current year [14] - MDT has a ROE of 14.9%, outperforming the industry average of -2.5% [14] Group 3: Intuitive Surgical Inc. (ISRG) - Intuitive Surgical is embedding AI into its robotic systems, providing objective performance indicators for surgeons [15] - The company is piloting telecollaboration for remote surgical support, enhancing training and decision-making [16] - ISRG's revenue and earnings growth rates are expected to be 14.3% and 11.1% respectively for the current year [19] - ISRG has a ROE of 15.1%, compared to the industry's ROE of -18.7% [19] Group 4: Regeneron Pharmaceuticals Inc. (REGN) - Regeneron utilizes AI and machine learning for drug target identification, clinical trial optimization, and precision medicine [20] - The company has seen revenue growth driven by strong performance from Dupixent and Libtayo, despite declining sales of Eylea [21] - REGN's expected revenue and earnings growth rates are 4.9% and -0.4% respectively for the current year [23] - REGN has a ROE of 13.8%, significantly higher than the industry's ROE of -65.41% [23] Group 5: Johnson & Johnson (JNJ) - Johnson & Johnson's MedTech division is focused on AI technologies for surgical robotics and digital surgery analytics [24] - The company has developed the Ottava robotic surgery platform and the Caresurgical/VELYS digital surgery systems, enhancing procedure planning [25] - JNJ has an expected revenue and earnings growth rate of 5% and 5.7% respectively for the current year [26] - JNJ has a ROE of 32.7%, compared to the industry's ROE of 37% [26]

Investment Rating - The report assigns an "Outperform" rating for the pharmaceutical industry [1]. Core Insights - On December 19, the U.S. government announced agreements with 14 pharmaceutical companies, including major players like Amgen, Gilead, and Novartis, to implement Most-Favored-Nation (MFN) pricing, which includes price reductions for certain medications and increased domestic investment [6][17]. - The agreements entail a commitment of at least $150 billion in domestic production investments from the participating companies [18]. - Price reductions are primarily focused on Medicaid and direct sales channels, which are expected to have a limited impact on overall revenue for the companies involved [19]. Summary by Sections MFN Negotiations - The MFN negotiations are nearing completion, with 14 pharmaceutical companies reaching agreements with the government, covering aspects such as Medicaid price reductions and international pricing alignment for new drugs [6][17]. - The agreements include provisions for lowering costs of chronic disease medications and implementing MFN pricing for all listed innovative drugs [18]. Impact on Tariffs and Market Reaction - The MFN agreements provide a three-year exemption from tariffs, alleviating previous uncertainties regarding trade policies affecting the pharmaceutical industry [14][19]. - Following the announcement, the XBI index rose by 2.85%, indicating a neutral to optimistic market reaction to the agreements [11]. Specific Measures and Commitments - Companies are required to lower costs for chronic disease medications, including those for type 2 diabetes and rheumatoid arthritis, through direct sales channels [6][18]. - The agreements also stipulate that companies will donate active pharmaceutical ingredients to a strategic reserve to reduce reliance on foreign sources [7][18].