NVO - Eli Lilly: The Party Is Not Over
2024-03-23 05:50:46 ET
Summary
- Eli Lilly's stock price has increased by 129% in a year, with a Forward Price-To-Earnings Ratio of 60.4.
- Lilly's valuation in a base case scenario at $171/share, considering traditional drug revenues.
- New growth markets, such as obesity, Alzheimer's, psoriasis, and diabetes Type I markets, could add up to $1,093/share to Lilly's total market value.
Context
The world of software is being revolutionized by AI technology. The same thing happens in the pharmaceutical world, where new drugs to fight obesity are the driver of its transformation. It is a revolutionary medicine not only to get people thinner but also because obesity is the cause of a lot of diseases, from cardiovascular health problems to diabetes and cancer… Two companies are leading this space: Novo Nordisk (NVO) and Eli Lilly (LLY). I am interested in Lilly because it is getting the capacity to approach more new markets I am interested in. For instance, it seeks approval for a drug to fight against Alzheimer's....
Eli Lilly: The Party Is Not Over