LLY - Eli Lilly: Will It Be The First Ever Trillion-Dollar Drug Company?

2024-02-23 16:00:00 ET

Summary

• LLY has delivered top/ bottom line beats in the FQ4'23 earnings call, while delivering impressive FY2024 guidance and reporting promising updates to its pipeline.
• Most notably, we expect its obesity candidates/ therapies to be its long-term top/bottom line drivers, with the next-gen Retatrutide already delivering nearly doubled weight loss than Zepbound and NVO's CagriSema.
• However, the growing exuberance embedded in LLY's stock valuations and sustained hype by market analysts have already propelled the stock to dangerous levels, one unseen before in the pharmaceutical industry.
• Readers beware. The potential crash and burn may be very painful indeed, with investors advised to size their portfolios according to their risk appetite.

We previously covered Eli Lilly and Company ( LLY ) in October 2023, discussing its robust pipeline, with the diabetes/ obesity drugs likely to outperform AbbVie Inc.'s ( ABBV ) Humira with FY2022 global revenues of $21.23B and Merck & Co., Inc.'s ( MRK ) Keytruda worth $20.93B....

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