Eli Lilly (LLY) is a leading U.S. pharmaceutical company best known for its blockbuster diabetes and weight-loss drug Mounjaro (Tirzepatide) and its new obesity drug Zepbound. The company has seen massive growth due to the GLP-1 drug boom, becoming one of the most valuable healthcare firms globally. In addition to obesity and diabetes, Lilly also develops treatments in oncology, neuroscience, and immunology. Their results on the 1st of May illustrated the increasing importance to the company of weight loss drugs and how they’re getting it right:
- Eli Lilly (LLY) reported 1Q25 revenue of $US12.73 billion, reflecting a 45% YoY increase primarily driven by strong demand for its weight-loss and diabetes drugs Mounjaro and Zepbound.
- Weight-loss therapies, including Mounjaro and Zepbound, alone generated roughly $US1.81B + $US0.52B = $IS2.33 billion, accounting for about 18% of total revenue in that quarter.
- Adjusted net income for the period was $US3billion, up 29% year-over-year, highlighting healthy margin strength alongside revenue growth
In terms of valuation, the stock is trading ~20% below its 5-year average as the whole sector has been derated.
- Eli is our preferred pick for weight loss drugs today, although its less likely to bounce as sharply as NVO.
MM is cautiously bullish towards ELI
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