Eli Lilly and company today
Eli Lilly and company
As of 3:58 pm ET
- 52 week range
- $612.70
▼
$972.53
- Dividend yield
- 0.81%
- P/E ratio
- 80.30
- Target price
- US$1002.22
Eli Lilly and Co. New York Stock Exchange: LLI is a major global pharmaceutical company in the medical sector. The company has made headlines for its dominant GLP-1 drug, Tirzepatide, sold under the brand names Mounjaro for the treatment of type 2 diabetes and Zepbound for the treatment of obesity. Although there are many potential candidates in clinical trials, the current GLP-1 market is a duopoly dominated by Eli Lilly. Novo Nordisk A/S New York Stock Exchange: HBOmanufacturer of semaglutide, sold under the Ozempic and Wegovy brands. In addition, Lilly has a strong drug pipeline, led by the recently FDA-approved and launched Alzheimer’s drug Donanemab, marketed under the brand name Kisunla. Mirikizumab is for the treatment of Crohn’s disease, and Lebrikizumab is for the treatment of atopic dermatitis and asthma. Pirtobrutinab is a new generation BTK inhibitor.
Record sales of GLP-1 drugs sent Lilly shares to a new all-time high of $972.59 in 2024, but they have since fallen 17.75% as of January 10, 2025. Lilly authorized a $15 billion share buyback on December 9, 2024. For bullish investors, this pullback could be the opportunity they’ve been waiting for. Here are four reasons not to look a gift horse in the mouth and consider taking a position in the company during this pullback.
1) Earnings continue to fall, but $2.83 billion in intellectual property and development fees drowned out third-quarter results.
Lilly was the earnings leader, but its recent earnings have missed consensus estimates, which were a major factor before its selloff. Eli Lilly reported third-quarter 2024 earnings per share of $1.18, missing the consensus estimate by 27 cents. Revenue grew 20.4% YoY to $11.44 billion, missing analysts’ consensus estimates of $12.09 billion. Excluding revenue from its portfolio of olanzapine Zyprexa, the global commercial rights to which Lilly sold to CHPLAPHARM in April 2023 year, revenue actually jumped 42% YoY and global volume jumped 36% YoY comparison.
Additionally, third-quarter earnings also included one-time expenses known as in-progress research and development (IPR&D) expense of $2.83 billion, or $3.08 per share. These are the charges Lilly took on when it acquired Morphic and its integrin drugs, which grew revenue 17% year over year.
2) Tirzepatide is still successful, receiving more and more approvals
Eli Lilly Stock Analysis and Company MarketRank™
- Overall MarketRank™
- 100th percentile
- Analyst rating
- Moderate purchase
- Pros/Cons
- Growth potential 34.4%
- Short interest level
- Healthy
- Dividend Power
- Strong
- Environmental assessment
- -2.25
- Mood News
- 0.65
- Insider trading
- Sale of shares
- Project Profit Growth
- 82.02%
See full analysis
Lilly’s GLP-1 drugs show no signs of slowing down. They also proved to be superior to Novo Nordisk’s semaglutide, as evidenced by an average weight loss of 20.2% compared to a weight loss of 13.7% in the SURMOUNT-5 studies. Tirzepatide was also approved on December 20, 2024 for the treatment of obstructive sleep apnea and is being studied in additional indications including chronic kidney disease, cardiovascular disease risk reduction (38% reduction in risk of heart failure), and metabolic dysfunction-associated steatohepatitis (MASH). ). . On July 22, 2024, China also approved Tirzepatide for the treatment of obesity, becoming the country’s first and only dual GIP/GLP-1 agonist. However, there are 15 GLP-1 mimic drugs in development, which will significantly increase competition among the world’s second largest population.
In the third quarter of 2024, Mounjaro’s worldwide revenue grew 121% to $3.11 billion. Zepbound’s revenues rose to $1.28 billion. Revenues would have been higher if not for supply shortages. Zepbound launched in the US in November 2023.
3) Retatrutide is a new generation of GLP-1
Lilly plans to release its tablet version of Tirzepatide in 2026 under the name Orforgliprone. To further secure its GLP-1 throne, Lilly is already preparing its next-generation GLP-1 blockbuster Retatrutide, a triple agonist targeting the GIP, GLP-1 and glucagon receptors. Phase 2 studies show that participants reduced their average weight by 17.5% in just 24 weeks and lost 24.2% of body weight in 48 weeks. The safety profile was similar to other incretin-based treatments, with gastrointestinal side effects being the most commonly reported side effects.
Dr. Anya Yastreboff commented: “Participants receiving the highest dose of retatrutide achieved an average weight loss of 24.2%; this corresponds to an average absolute weight loss of approximately 58 pounds over the 11-month study period.”
Dr. Yastreboff added: “Given that participants had not yet reached a weight plateau at the end of the study, it appears that full weight loss effectiveness has not yet been achieved. Longer-term Phase 3 studies will allow us to comprehensively evaluate the efficacy and tolerability of this potential pharmacotherapeutic agent for the treatment of obesity.”
4) LLY stock forms a daily symmetrical triangle breakout
A symmetrical triangle consists of a descending (falling) upper resistance line converging with an ascending (rising) lower support line at the top point. A breakout occurs when a stock rises above the upper trend line resistance line. A breakout occurs when a stock falls below the lower support line of the trend line. A breakout or breakdown becomes noticeable as the stock approaches a top and the channel narrows.
The LLY symmetrical triangle formed resistance at the descending upper trend line at $907.98 and converged at the apex with the ascending lower support line starting at $711.40. The daily flat support VWAP is $776.82. The breakout triggered a rally through upper trend line resistance at $787.22. The daily RSI rises to the 56 band. Fibonacci (Fibonacci retracement support levels are located at $771.36, $747.56, $717.51 and $678.79.
Actionable Option Strategies: Bullish investors may consider using cash-backed puts at Fibonacci retracement support levels to buy the dip. If the stock is allocated, then writing a covered call at the upper Fibonacci levels implements a wheel strategy to generate income in addition to the annual dividend yield of 0.83%.
Before you consider Eli Lilly and Company, you should hear this.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Eli Lilly and Company wasn’t on the list.
While Eli Lilly and Company currently has a Moderate Buy analyst rating, the top-rated analysts think these five stocks are Strong Buys.
View five stocks here
As the AI market heats up, investors with AI dreams have the potential to see real profits. Learn about the industry as a whole, as well as seven companies powered by AI.
Get this free report