Eli Lilly: The Next Big Thing in Biotech

In the ever-evolving world of biotech, few companies have the potential to revolutionize the market like eli lilly. With a robust pipeline of innovative drugs and several major catalysts on the horizon, Eli lilly is poised to become a standout performer in 2025. Let's dive into the details and see why this stock is a must-buy for long-term investors.



The Weight Management Game-Changer

Eli Lilly is already a leader in the weight management market with its dual GLP-1/GIP medicine, Zepbound (tirzepatide), which generated almost $5 billion in sales last year. But the real game-changer could be orforglipron, an investigational oral therapy currently undergoing phase 3 studies. If orforglipron's results rival or exceed those of injectable medicines, it could become the first oral medicine for weight management approved by the U.S. Food and Drug Administration. This would be a significant milestone, as many drugmakers are looking to develop anti-obesity medicine options that are taken orally, which could attract more patients even with a less convenient once-daily schedule.

Beyond Weight Management

Eli Lilly's pipeline doesn't stop at weight management. The company has several other promising candidates in late-stage studies, including Ebglyss for moderate to severe atopic dermatitis (eczema) and Kisunla for Alzheimer's disease. Both of these drugs are projected to be blockbusters at their peak, driving excellent top-line growth well into the next decade. Additionally, retatrutide is another promising potential weight loss treatment in late-stage studies. Retatrutide goes one step further than tirzepatide by mimicking the action of three separate hormones responsible for functions such as regulating blood glucose levels, controlling satiety, and stimulating insulin secretion.

Financial Performance and Market Position

Eli Lilly's financial performance has been mixed in recent times. After starting 2024 strong, the company did not perform well in the second half of the year. Its financial results, though solid compared to similarly sized peers, were not always up to investors' high standards for the market-leading drugmaker. However, Eli Lilly is gaining momentum and expects significant catalysts that could send its stock price soaring in 2025. This includes the potential approval and success of its investigational medicine, orforglipron, which is undergoing phase 3 studies in weight management. If orforglipron's results rival or beat the performance of injectable medicines, it could send Eli Lilly's stock price soaring. This is because orforglipron would likely become the first oral medicine for weight management approved by the U.S. Food and Drug Administration.

Key Differentiators

Eli Lilly's key differentiators that make it a strong buy-and-hold option include its innovative potential, robust lineup that's helping drive excellent sales growth, and strong pipeline. The company's dual GLP-1/GIP medicine, Zepbound (tirzepatide), generated almost $5 billion in sales last year after being approved in late 2023. This shows that Eli Lilly is one of the leaders in the market for weight management drugs. Additionally, Eli Lilly has exciting candidates across other areas, from immunology and oncology to rare diseases. Its innovative potential, robust lineup that's helping drive excellent sales growth, and strong pipeline all make it an attractive stock to buy and hold long-term, regardless of what happens with orforglipron later this year.

Conclusion

Eli Lilly is a company with a bright future. Its innovative pipeline, strategic catalysts, and strong market position make it a standout performer in the biotech sector. With several major catalysts on the horizon, including the potential approval of orforglipron, Eli Lilly is poised to become a star stock in 2025. For long-term investors, Eli Lilly is a must-buy, offering the potential for significant growth and market leadership.

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