This Unstoppable Stock Has Gained 100,203% Over The Last 50 Years, Creating Many Millionaires in the Process. Here Are 3 Reasons I Think It Will Continue to Create Generational Wealth.
LillyLilly(US:LLY) The Motley Fool·2024-09-08 10:45

Core Insights - Eli Lilly has been a significant performer for investors, with total returns of 100,203% since 1972, indicating strong historical performance and potential for future growth [2][3] Group 1: GLP-1 Market Potential - The GLP-1 market, driven by weight loss treatments, is still in its early stages, with Eli Lilly positioned to benefit from this growth through its drugs Mounjaro and Zepbound [3][5] - The global total addressable market (TAM) for GLP-1 treatments was valued at $36.8 billion in 2023, with a forecasted compound annual growth rate (CAGR) of 21.6% from 2024 to 2030, potentially exceeding $100 billion by 2030 [4] - Lilly is exploring new indications for its GLP-1 drugs, which could expand their use beyond diabetes and weight management, indicating further growth potential [5] Group 2: Alzheimer's Drug Opportunity - Eli Lilly's Alzheimer's drug, donanemab, received FDA approval, with the current TAM for Alzheimer's therapeutics at $6.5 billion and a forecasted CAGR of 19% from 2024 to 2033, potentially reaching $31 billion [6] - The limited competition in the Alzheimer's treatment space, combined with the strong demand for GLP-1 drugs, positions Lilly favorably for future growth [6] Group 3: AI in Healthcare - Eli Lilly is collaborating with OpenAI to leverage generative AI for developing antimicrobial medications, addressing the significant health concern of antimicrobial resistance (AMR) [7][8] - The World Bank estimates that healthcare costs related to AMR could reach $1 trillion by 2050, highlighting the long-term importance of addressing this issue [8]