REGN - Eli Lilly: Addressing Supply Challenges Should Accelerate Growth

2024-05-26 15:19:39 ET

Summary

• Eli Lilly's shares reached new all-time highs after the company increased full-year revenue and EPS guidance.
• The company's growth is currently supply-constrained and the growth of tirzepatide in the near- and possibly medium-term should only be limited by the quantities it can produce.
• Eli Lilly's competitive position in the obesity market is discussed in today's article along with the potential for growth acceleration in 2025 and 2026 versus current expectations for moderating growth rates.
• Eli Lilly also has a healthy pipeline outside of obesity and the potential near-term launches of lebrikizumab and donanemab could positively impact its near- and long-term growth trajectory.
• Valuation looks slightly uncomfortable at current levels and it will be critical for Eli Lilly to continue to execute and for growth expectations to continue to rise.

Shares of Eli Lilly ( LLY ) reached new all-time highs this week, driven by the continued share price and fundamental momentum, and by what some would say is the obesity market hype. The former is true if we just look at the numbers, but there is also some truth to the latter. This can be seen by the formation of a GLP-1 ETF of which Eli Lilly and main competitor Novo Nordisk ( NVO ) are a big part – the Roundhill Glp-1 & Weight Loss ETF ( OZEM )....

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