Eli Lilly (LLY) as a Long-Term Add Amid Near-Term Headwinds
"And that's going to lead us to cheap stock number three, which is going to be Eli Lilly, stock ticker LLY. It is one of those healthcare stocks that has lagged the market, facing pricing and margin pressures, yet it presents a buying opportunity on the dip. Eli Lilly has a massive market cap of $757 billion, and over the past 12 months, shares are down 13%. Revenues have hit a record $53.3 billion with operating margins at 32.4%. With a forward PE of 26.4 times and an EV to EBITDA well below its 5-year average, analysts have given a 12-month price target of $947 per share, implying nearly 20% upside. Given the attractive PEG ratio and the company building its pipeline, it seems like a great time to add to the name."
The speaker outlines a bullish long-term play on Eli Lilly (LLY), emphasizing that despite recent headwinds, its robust revenue growth, premium margins, and attractive valuation multiples make it an appealing buy. The recommendation is to consider adding to positions on the dip as the company invests heavily in its future pipeline.
Eli Lilly Under Pressure From Weight Loss Drug Pricing Comments
"So, can we talk about the JLP1 drugs, most notably LLY, Eli Liy? Yes, Eli Liy. The stock is down about 2% right now. It's been falling all day after Trump said that the price of Ozmpic could come down to just $150 a month. So, Eli Liy, they don't make OMPic. That's Novo Nordisk. that stock uh trading in Europe was down as well, but we're seeing Eli Liy, they have similar weight loss drugs."
The commentary focuses on Eli Lilly's stock weakness in response to external commentary on weight loss drug pricing. The discussion notes that while Eli Lilly is not directly tied to the drug mentioned, market sentiment is affected due to comparisons with competitors.
Eli Lilly Rebound Trade Call
"I say Eli Lilly, if you're interested in this one, it's a $900 stock. ... If I were buying at $825, I'd probably put the bottom at $795 and expect a move upward, with Wall Street pricing at around $888."
The analyst presents Eli Lilly as a trade idea, suggesting that if purchased around $825 with a defined bottom near $795, the stock has potential to reach around $900, supported by Wall Street price targets and gap-fill patterns. This is positioned as a bullish trade call despite the noted high valuation.
Balancing R&D Investment and Supply Chain Expansion for Long-Term Innovation
"We spend 25% of sales on R&D. This year that'll be $14.2 billion. And with our commitment to building out the supply chain, constructing six plants with plans for four more, we're betting on both organic growth and external innovation to fuel the next generation of drugs. We have to balance lowering prices for accessibility with preserving incentives for future innovation."
The CEO outlines Eli Lilly's strategy of reinvesting heavily in R&D (25% of sales, amounting to $14.2 billion this year) and expanding its supply chain through new plant construction. This approach aims to maintain a competitive edge in innovation while carefully managing drug pricing to sustain future product development. The discussion provides investors with an overview of both growth catalysts and inherent risks in the pricing-innovation trade-off.
Eli Lilly GLP-1 Drugs Drive Explosive Revenue Growth and Pricing Adjustments
"We reported global sales, which surpassed Keytruda to becoming the best selling drug in the world, actually the best selling drug in the world of all time in Q2 this year. How much did it make in Q2? We, uh, $8.1 billion in revenue and growing at 80%. And originally it was priced around $1,000, now down to $499, with plans to push it further lower, and eventually moving to an oral pill format next year."
The CEO discusses the remarkable performance of Eli Lilly's GLP-1 drugs, noting an $8.1 billion revenue in Q2 with 80% growth, pricing cuts from $1,000 to $499, and plans to launch an oral pill version next year. This commentary underscores the company's strong product traction, market leadership, and potential for further growth as pricing adjusts to broader market access.
Balancing Price Reductions with Future R&D Investments
"We've led in reducing the out-of-pocket costs from, it was originally $1,000. Now it's $499 ... But here's the risk... if we cut the price too low, there will be no more new medicines in this category."
The CEO addresses Eli Lilly’s strategy to cut drug prices to improve patient access while simultaneously investing heavily in R&D. By lowering the cost to consumers gradually, the company seeks to balance immediate market competitiveness with the need to sustain innovation and future growth. This nuanced strategy offers investors compelling insights into how pricing pressures can coexist with reinvestment in breakthrough therapies.
Eli Lilly’s GLP-1 Innovation Boost Spurs Growth Potential
"G-L-P-1 drugs have become increasingly popular. Eli Lilly coming to save us here. ... Eli Lilly's experimental pill appears to work as well as the injected drug."
The discussion highlights Eli Lilly’s transition in its GLP-1 portfolio from traditional injectable formulations to an experimental pill format that promises similar efficacy. The remarks underscore strong organic growth, evidenced by massive revenue gains and market cap expansion, pointing to a transformative moment for the company’s diabetes and weight loss treatments. The conversation also touches upon the company’s robust investment in R&D and supply chain expansion, reinforcing its competitive positioning in the lucrative healthcare segment.
Eli Lilly Benefits from Domestic Manufacturing Amid Pharma Tariffs
"He announced 100% tariffs on imports of patented drugs, with the big caveat being that there will be exemptions if construction has started on a U.S. manufacturing base... Eli Lilly, up almost 2%, and a negative for Novo Nordisk over in Copenhagen."
Eli Lilly appears to benefit from the new pharma tariff regime due to its stronger domestic manufacturing footprint, positioning it to gain relative to competitors that rely more on foreign operations.
Tailwind for Eli Lilly Amid Tariff Developments
"We are seeing a bit of pop in shares here for Eli Lilly, up as much as 2% right now in trading."
Eli Lilly (LLY) is benefiting from recent tariff policies as the U.S. is giving preferential treatment to companies with domestic manufacturing. This tariff impact is acting as a tailwind for the stock, contributing to a modest increase in its share price.
Eli Lilly Halts Experimental Weight Loss Trial
"Eli Lilly, the drug maker, down about 1%. This comes after news that the company halted a study of an experimental drug that would be done in combination with one of its weight loss drugs to help prevent obese patients from losing too much muscle."
Eli Lilly has stopped a clinical study involving an experimental drug combination aimed at preventing muscle loss in obese patients undergoing weight loss. The decision comes as the stock trades down modestly by around 1% and near its lowest levels in recent weeks. The halting of the trial represents a re-evaluation of its strategy in a competitive field with peers like Novo Nordisk.