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Yahoo
a day ago
- Business
- Yahoo
1 Underrated Reason to Buy This Market-Beating Stock
Eli Lilly recently acquired a smaller biotech for its promising investigational pain medication. The company generates strong sales from products outside of diabetes and obesity care. Eli Lilly's portfolio, both within and outside its core area, makes the stock attractive. 10 stocks we like better than Eli Lilly › Eli Lilly (NYSE: LLY) has been one of the top-performing healthcare megacap stocks of the past decade. And in more recent years, particularly over the past five, it's easy to point to the biggest factor driving Eli Lilly's run: The company's work in diabetes and, especially, the weight loss market. Eli Lilly is unquestionably one of the two leaders in this fast-growing field, and it appears to be gaining ground on its biggest competitor, Novo Nordisk. However, a recent move Eli Lilly made reveals an underrated reason why the stock has attractive prospects. Here's what investors should know. On May 27, Eli Lilly announced it would dish out $1 billion in cash to acquire SiteOne Therapeutics, a privately held biotech. The key asset from this transaction is STC-004, a mid-stage investigational non-opioid oral pain medicine. Though there are treatment options for chronic pain, non-opioid ones could become increasingly popular since opioid-based therapies often carry significant side effects. Meanwhile, this market is brand new. In January, Vertex Pharmaceuticals earned approval from the U.S. Food and Drug Administration for Journavx, the first non-opioid oral pain inhibitor. Eli Lilly is looking to make waves in this market with the acquisition of SiteOne Therapeutics. The transaction may or may not pan out. Perhaps STC-004 will flop in upcoming clinical trials. But there's something important to highlight about Eli Lilly that this acquisition brings to light. This move is hardly out of the ordinary for Eli Lilly. One thing that sets it apart from Novo Nordisk is that, while the latter generates more than 90% of its revenue from its diabetes or obesity medicines, Eli Lilly's lineup of drugs features some major blockbusters outside this area. In the first quarter, the company's revenue grew 45% year over year to $12.73 billion. Eli Lilly's cancer drug Verzenio racked up $1.2 billion in sales, up 10% year over year. The company's immunosuppressant, Taltz, generated $762 million in revenue, a 26% increase over the year-ago period. Eli Lilly's sales outside of diabetes and obesity products accounted for almost 28% of its top line. That might not exactly be peak diversification, but Eli Lilly fares better than its eternal rival, Novo Nordisk, in this department. Furthermore, the company's newer products also feature several that fall outside its core area of expertise. These include Kisunla in Alzheimer's disease, Jaypirca in oncology, and Ebglyss, an eczema treatment. The same can be said about Eli Lilly's pipeline. Consider the company's investigational gene therapy for genetic deafness, as well as its several dozen programs in oncology. To be clear, Eli Lilly's diabetes and weight management medicines should continue occupying the role of main growth drivers. In the first quarter, Mounjaro's revenue soared by 113% year over year to $3.8 billion. Zepbound's sales came in at $2.3 billion, representing a 347% increase compared to the first quarter of 2024. Neither has peaked yet. Considering analyst projections for the GLP-1 market, they will continue growing their sales at an incredible clip at least through the end of the decade. And there is more where that came from, too. Eli Lilly is developing newer medicines in this area. The company's investigational oral GLP-1 therapy, orforglipron, recently aced a phase 3 study. According to management, the drugmaker has a total of 11 obesity pipeline candidates. So, Eli Lilly's work in this field will remain one of the major keys to its success. Perhaps it is what will get many investors nowadays interested in the stock. However, Eli Lilly is also a diversified pharmaceutical giant with a strong portfolio of medicines and promising candidates in oncology, immunology, and other areas. So, even with mounting competition in the GLP-1 market, Eli Lilly remains attractive, not just because it is likely to develop better anti-obesity medicines than most of its competitors, but because it is a leader in other markets as well. That's another excellent reason to invest in Eli Lilly and hold on to its shares for a long time. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Prosper Junior Bakiny has positions in Eli Lilly, Novo Nordisk, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. 1 Underrated Reason to Buy This Market-Beating Stock was originally published by The Motley Fool Sign in to access your portfolio
CNBC
27-05-2025
- Business
- CNBC
Every portfolio stock is higher in Tuesday's market rally. Here's our top performer
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The S & P 500 surged 2% on Tuesday after President Donald Trump said he would delay the 50% tariff on the European Union that he threatened Friday. Stocks had dropped last Friday amid concerns that investors had grown too complacent about trade tensions and that high tariffs might soon return. This recent episode served as a reminder that the risk of increased tariffs is always present. However, it's important not to overreact. Tariffs can just as easily be rolled back if meaningful progress is made toward on a trade agreement — or in the case of the EU, progress is made toward scheduling trade talks. Feeling better : Also boosting stocks was a better-than-expected Conference Board reading on consumer confidence for May. The index increased 12.3 points to 98, breaking five straight months of declines. The U.S. and China agreeing on May 12 to reduce tariffs for 90 days looks to be a big driver of the rebound since about half of the responses were collected after that announcement. The cutoff day for these preliminary results was May 19. The encouraging data brought in a wave of buying to consumer discretionary stocks, namely in travel and retail, since their sales tend to be better when the consumer is feeling better about the future. Club names Amazon , Home Depot , Starbucks , TJX Companies , and Texas Roadhouse are the consumer discretionary stocks in the portfolio. For Texas Roadhouse, shares rallied to their highest level of 2025 and were nearing their record-high close of $205.27 back in late November. During last week's Monthly Meeting, Jim said he was pleased with the rally and that we might trim if the stock goes above $200. Biotech deal: Eli Lilly announced Tuesday it bought a private biotech company called SiteOne for up to $1 billion in cash. SiteOne's lead drug candidate is STX-004, a Phase 2-ready, next-generation, non-opioid treatment for patients suffering from chronic pain. It makes sense for Club name Lilly to expand its pipeline into the non-opioid pain field given the success of Vertex Pharmaceuticals' Journavx, which was approved by the FDA earlier this year and was the first in this new class of pain management medicines. On May 1, Eli Lilly delivered better-than-expected quarterly results, with sales of its popular GLP-1 diabetes and obesity medications exceeding estimates. However, a GLP-1 partnership between CVS Health and Novo Nordisk sent Lilly shares tumbling. On May 22, we added to our Lilly position on the dip. Up next: The identity protection firm Okta reports earnings after Tuesday's close. Before Wednesday's opening bell, Macy's , Abercrombie & Fitch , and Capri Holdings report. Dick's Sporting Goods reports, too, but provided preliminary first quarter results two weeks ago after announcing its plans to buy Foot Locker . Wednesday is a light day for economic data, with weekly mortgage applications and the Richmond Fed Manufacturing Index being the only key reports on the schedule. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
CNBC
27-05-2025
- Business
- CNBC
Eli Lilly to buy privately held SiteOne in deal worth up to $1 billion
Eli Lilly will buy privately held SiteOne Therapeutics in a deal worth as much as $1 billion, the companies said on Tuesday, giving the drugmaker access to an experimental non-opioid pain medicine. SiteOne's STC-004 belongs to a class of drugs, known as Nav1.8 inhibitors, that target the channels involved in transmitting pain signals. Vertex Pharmaceuticals' recently approved non-opioid painkiller Journavx also belongs to the same class. Under the terms of the agreement, SiteOne shareholders could receive up to $1 billion in cash, inclusive of an upfront payment and subsequent payments upon achievement of certain regulatory and commercial milestones.
Yahoo
27-05-2025
- Business
- Yahoo
Eli Lilly to buy privately held SiteOne in deal worth up to $1 billion
(Reuters) -Eli Lilly will buy privately held SiteOne Therapeutics in a deal worth as much as $1 billion, the companies said on Tuesday, giving the drugmaker access to an experimental non-opioid pain medicine. SiteOne's STC-004 belongs to a class of drugs, known as Nav1.8 inhibitors, that targets the channels involved in transmitting pain signals. Vertex Pharmaceuticals' recently approved non-opioid painkiller Journavx also belongs to the same class. Under the terms of the agreement, SiteOne shareholders could receive up to $1 billion in cash, inclusive of an upfront payment and subsequent payments upon achievement of certain regulatory and commercial milestones.
Reuters
27-05-2025
- Business
- Reuters
Eli Lilly to buy privately held SiteOne in deal worth up to $1 billion
May 27 (Reuters) - Eli Lilly (LLY.N), opens new tab will buy privately held SiteOne Therapeutics in a deal worth as much as $1 billion, the companies said on Tuesday, giving the drugmaker access to an experimental non-opioid pain medicine. SiteOne's STC-004 belongs to a class of drugs, known as Nav1.8 inhibitors, that targets the channels involved in transmitting pain signals. Vertex Pharmaceuticals' (VRTX.O), opens new tab recently approved non-opioid painkiller Journavx also belongs to the same class. Under the terms of the agreement, SiteOne shareholders could receive up to $1 billion in cash, inclusive of an upfront payment and subsequent payments upon achievement of certain regulatory and commercial milestones.
