Why Eli Lilly's Stock Could Be Gearing Up for a Big Rally

Core Viewpoint - Eli Lilly's stock has underperformed in 2023, down over 4% year-to-date, but has shown impressive growth over the past five years with gains around 400% [1][2] Group 1: Stock Performance - Despite a disappointing performance this year, there are reasons to remain optimistic about Eli Lilly's long-term prospects [2] - The stock experienced a significant drop on August 7 after the weight loss pill orforglipron showed only a 12% weight loss in trials, below the expected 15% [5] - Recent trial data on August 26 indicated that orforglipron helped diabetes patients lower blood sugar levels, achieving a 10.5% weight loss on the highest dose, meeting all key endpoints [6] Group 2: Growth Opportunities - Eli Lilly's portfolio includes GLP-1 medications, which are crucial for long-term growth and have already generated billions in revenue this year [4] - The company plans to file for regulatory approval for orforglipron, with a potential launch in about a year if the approval process goes smoothly [7] - The obesity and diabetes markets present significant growth opportunities, and being first to market with orforglipron could provide a competitive advantage [8]