Better Buy in 2026: Pfizer or Eli Lilly?

Core Viewpoint - Eli Lilly has significantly outperformed Pfizer in stock performance, with a nearly 200% increase in 2023, while Pfizer has seen a decline of nearly 50% [1]. Growth Potential - Eli Lilly is focusing on GLP-1 drugs and expanding manufacturing capabilities, with a $6 billion investment in a new plant in Alabama to produce orforglipron [5]. - Pfizer has pursued acquisitions to enhance its pipeline, including a $43 billion acquisition of Seagen and a recent $7 billion deal for Metsera, aimed at obesity treatments [6]. - Eli Lilly is viewed as having a clearer growth path compared to Pfizer, which may take longer to realize the benefits of its acquisitions [7]. Financial Strength - Eli Lilly expects sales of approximately $63 billion in 2024, a 40% increase from $45 billion in the previous year, driven by strong demand for its GLP-1 drugs [8]. - Eli Lilly maintains a profit margin of around 31%, indicating robust net income growth alongside revenue increases [9]. - Pfizer is currently struggling to grow sales, and its acquisitions have not yet yielded significant financial benefits [8].