Here’s What Dragged Eli Lilly and Company (LLY) Down in Q2

Core Insights - The PGIM Jennison Health Sciences Fund's second-quarter 2025 investor letter highlights significant volatility in equities, with the S&P 1500 Health Care Index declining 6.9%, underperforming the S&P 500's 10.9% return [1] - Health care providers, life sciences tools, biotechnology, and pharmaceuticals underperformed, while healthcare technology and medtech sectors showed gains [1] - Eli Lilly and Company (NYSE: LLY) is identified as a key stock, with a one-month return of 0.56% and a 52-week loss of 19.05% [2] Company Analysis: Eli Lilly and Company - Eli Lilly is a diversified biopharmaceutical company with strong franchises in Diabetes, Obesity, Immunology, Neurodegeneration, and Oncology, and is a leader in diabetes treatments with the successful launch of tirzepatide [3] - The company experienced a minor sales miss in the U.S. for Mounjaro, but strong performance from Zepbound and international Mounjaro growth led to an overall small beat for the tirzepatide franchise [3] - Eli Lilly's quarterly margins and Earnings Per Share (EPS) exceeded expectations, and the company maintained its year-end 2024 foreign exchange assumptions, setting the stage for potential guidance raises [3] - Recent stock weakness was attributed to overreactions regarding competitive pressures in the GLP-1 market, which are now seen as misplaced, with expectations for continued recovery in stock performance [3]