1 Growth Stock With Major Catalysts on the Way to Buy and Hold

Core Viewpoint - Eli Lilly is experiencing a strong start in 2024 but faced challenges in the second half of the previous year, with financial results not meeting high investor expectations. However, the company is gaining momentum and anticipates significant catalysts that could boost its stock price in 2025, making it a solid long-term investment option [1]. Group 1: Weight Management Drug Market - Eli Lilly is a leader in the weight management drug market, with its dual GLP-1/GIP medicine, Zepbound (tirzepatide), generating nearly $5 billion in sales last year after its late 2023 approval [2]. - Zepbound is administered via subcutaneous injection once a week, while there is a growing interest in developing oral anti-obesity medications that could attract more patients [3]. - Eli Lilly is developing orforglipron, a potential oral therapy currently in phase 3 studies for weight management, with results expected this year. If successful, it could become the first oral weight management medicine approved by the FDA [4]. Group 2: Competitive Landscape - Novo Nordisk recently faced a setback with its weight loss candidate CagriSema, which could enhance Eli Lilly's position in the market if orforglipron performs well [5]. - Orforglipron is also undergoing late-stage studies for other indications, including sleep apnea and diabetes, which could further impact its overall performance [6]. Group 3: Financial Performance and Future Prospects - Eli Lilly's revenue growth dropped 32% year-over-year in 2024, totaling $45 billion, but the company is expected to generate significant sales from newer products like Ebglyss and Kisunla, which are projected to be blockbusters [8][9]. - The company has a robust pipeline, including retatrutide, another promising weight loss treatment in late-stage studies, which mimics the action of three hormones [10]. - Eli Lilly's innovative potential and strong lineup across various therapeutic areas, including immunology and oncology, make it an attractive long-term investment regardless of the outcome of orforglipron [11].