Is Eli Lilly a Millionaire Maker?

Core Insights - Eli Lilly's share price has increased over 500% in the past five years, contrasting with a 20% rise for Merck and a nearly 30% decline for Pfizer [1] - The primary driver of Eli Lilly's stock performance is its success with GLP-1 inhibitors, a new class of weight loss drugs, which addresses obesity and related health risks [2] Industry Considerations - Developing and marketing new drugs is costly, and pharmaceutical companies face intense competition and regulatory challenges [3] - Eli Lilly's GLP-1 drugs currently have regulatory exclusivity until the middle of the next decade, but patent expirations could lead to revenue declines due to generic competition [4] - GLP-1 drugs accounted for over 50% of Eli Lilly's sales in the first half of 2025, indicating a significant reliance on this product line [5] Valuation Insights - Eli Lilly's stock is considered fully priced or expensive, with a dividend yield of 0.7%, below the pharmaceutical average of 1.1%, suggesting a premium valuation [6] - The market is aware of Eli Lilly's weight loss drug success, which is expected to dominate its business for at least the next decade [7]