Should You Forget Eli Lilly and Buy These Unstoppable Stocks Instead?
LillyLilly(US:LLY) Yahoo Finance·2026-01-23 18:05

Group 1: Eli Lilly and GLP-1 Drugs - Eli Lilly is currently leading the GLP-1 weight loss drug market with its injection-based products Mounjaro and Zepbound, generating significant excitement among investors [2][7] - The company's price-to-earnings ratio has surged to 51, significantly higher than the S&P 500 average of around 28, indicating that Wall Street may be overly optimistic about its future [2][3] - Competition is emerging in the GLP-1 space, particularly from Novo Nordisk, which has introduced a pill version of its weight loss drug, potentially threatening Eli Lilly's market position [3][7] Group 2: Alternatives in the Pharmaceutical Sector - Investors should consider other pharmaceutical companies beyond GLP-1 drugs, such as Merck and Bristol Myers Squibb, which focus on cardiometabolic therapies, cancer, and immune disorders [5][6] - Both Merck and Bristol Myers Squibb are currently under the radar due to their lack of exposure to GLP-1 drugs, but they face challenges related to upcoming patent expirations that could impact their revenue and profits [6][7] - Patent cliffs are a normal occurrence in the pharmaceutical sector, and while they pose risks, they are not uncommon for companies like Merck and Bristol Myers Squibb [6]