Lilly(LLY) The Motley Fool·2025-01-17 09:05Eli Lilly's Market Performance - Eli Lilly became the world's largest healthcare company with a market cap exceeding $860 billion during its nearly four-year run starting in late 2020 [1] - The company's stock has significantly pulled back over the last eight weeks, including a recent sell-off after cutting its 2024 revenue guidance due to lower-than-expected demand for its obesity and diabetes drugs [2] Trump's Tariff Policies - Trump proposed tariffs of at least 10% and up to 20% on all imports, with higher rates for specific countries like Canada (25%), Mexico (25%), and China (60%) [3][4][5] - The president-elect plans to create an "External Revenue Service" to collect tariffs, a responsibility currently handled by U S Customs and Border Protection [4] - Tariffs typically lead to higher prices for imported products, with costs usually passed on to consumers [6] Impact on Novo Nordisk and Eli Lilly - Novo Nordisk, based in Denmark, faces potential high tariffs under Trump's policies, which could increase prices for its drugs Ozempic and Wegovy [7][8] - Novo Nordisk's management expressed concern but did not comment on potential price impacts, stating they remain focused on delivering medicines [9] - Higher prices for Ozempic and Wegovy could benefit Eli Lilly by increasing demand for its competing drugs Mounjaro and Zepbound, especially if insurers favor Lilly's products to reduce costs [10] Future Outlook for Eli Lilly - Eli Lilly's sales for Mounjaro and Zepbound are expected to continue growing, with potential new product launches like the obesity drug orforglipron in early 2026 and the Alzheimer's drug Kisunla gaining momentum [13] - While Trump's tariffs may or may not make Eli Lilly a no-brainer stock in 2025, the company remains a strong investment regardless of political developments [13]