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Globe and Mail
5 days ago
- Business
- Globe and Mail
Should You Invest $1,000 in Eli Lilly today?
Eli Lilly (NYSE: LLY) sells a broad range of medicines, from cancer and immunology drugs to treatments for migraine. The pharma giant's presence across several treatment areas has helped it grow earnings over time. But, in recent years, one particular product portfolio has stood out and driven double-digit revenue growth: drugs to help people lose weight. Right now, Lilly sells tirzepatide, commercialized as Mounjaro for type 2 diabetes and as Zepbound for weight loss, though doctors have prescribed either one for patients hoping to shed pounds. Mounjaro and Zepbound each have become blockbusters, bringing in billion-dollar revenue annually. Lilly dominates the weight loss market along with rival Novo Nordisk, but a recent move by Lilly could help it push farther ahead in the coming years. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Considering this, should you invest $1,000 in Lilly stock today? Let's find out. Lilly's weight loss drugs So, first, let's talk about Lilly's path so far in this market and what might lie ahead. Lilly's weight loss drugs are part of a class known as dual GIP and GLP-1 receptor agonists. They act on hormonal pathways involved in the digestion process and help control blood sugar levels and appetite. Novo Nordisk's rival drug, semaglutide -- sold as Ozempic for type 2 diabetes and Wegovy for weight loss -- targets only GLP-1 but works in a similar way. Novo Nordisk was first to market with its product, winning approval for Ozempic in 2017, and this offered it time to build a market-leading position. But demand has been so high for such weight loss drugs that Lilly quickly gained share soon after entering the market with Mounjaro in 2022 and then with Zepbound in 2023. In fact, demand has been so strong that these drugs held spots on the U.S. Food and Drug Administration's drug shortage list for quite some time, only exiting the list in recent months. A better supply situation for weight loss drugs isn't due to a drop in demand but instead to increases in manufacturing capacity by both companies. So solid demand for these products still exists -- and is likely to grow. Goldman cuts its market forecast It's important to keep in mind, though, that both Lilly and rivals may face some headwinds in the years to come, and that's why Goldman Sachs Research recently reduced its forecast for global sales of anti-obesity medicines to $95 billion by 2030, from an earlier forecast of $130 billion. This is due to several potential challenges, including lower per-unit prices and weaker reimbursement from certain insurers. But even considering the challenges, "we see a significant growth opportunity for both existing players as well as new entrants into this market," said Goldman analyst Asad Haider. After all, from today's $28 billion market, the forecast figure represents a 239% increase. A look at Lilly's weight loss drug sales shows us this company has the momentum to benefit from this high-growth market. Last year, Mounjaro and Zepbound generated more than $11 billion and $4.9 billion in sales, respectively. And these two products are driving double-digit total sales growth at Lilly -- with a 32% gain in the full year and a 45% gain in the most recent quarter. Now, what may push Lilly past Novo Nordisk -- and keep it far ahead of newer rivals down the road -- is the company's progress on an oral weight loss candidate. Current products are in injectable form, which may be less convenient and even uncomfortable for certain users. Lilly recently reported positive results from a phase 3 trial of its oral candidate, orforglipron, and plans to request approval for use in weight management by the end of the year. Though Novo Nordisk sells an oral form of semaglutide, it involves strict food and water guidelines. The potential Lilly product doesn't, offering it a significant advantage. A look at valuation Now, let's return to our question: Should you invest $1,000 in Lilly right now? The shares are trading for 34 times forward earnings estimates -- that's around the same level as top tech companies such as Amazon and Nvidia, also known for delivering double-digit revenue growth. LLY PE Ratio (Forward) data by YCharts In fact, since the launch of tirzepatide, Lilly has traded at valuations resembling those of growth stocks. So it may seem pricey to you for a pharmaceutical player. But it's worth keeping in mind that Lilly stands out from the pharma crowd due to its presence in the high-growth market of weight loss drugs, yet at the same time it offers you the stability and dividend growth of a pharma stock. You generally can count on big pharma companies for steady revenue since patients always need their medicines -- regardless of the economic situation. And you can count on Lilly for passive income too, with a forward dividend of $6, representing a dividend yield of 0.8%. Meanwhile, valuation has come down from its peak to levels that look very acceptable for a growth stock. All of this means that, by investing in Lilly, you're getting growth worthy of a tech company along with the safety generally associated with a pharma stock. That makes the stock well worth the price, and a great place to park $1,000 right now. Should you invest $1,000 in Eli Lilly right now? 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Yahoo
16-05-2025
- Business
- Yahoo
United States Generic Drugs Market Analysis Report 2025-2033: Patent Expiry of Blockbuster Drugs, Generics and Innovator Drugs Price Differential, Dispensing Incentives, Reimbursement and Co-payments
The market in the United States is primarily driven by the product's ease of availability and affordability, which is supported by the growing number of expired patents. In addition, the aging population in the United States necessitates a greater volume of medications, and the expiration of patents for several blockbuster drugs creates growth opportunities for generic manufacturers. Additionally, the market is catalyzed by the rising cost of healthcare, including prescription medications, which forces payers and healthcare providers to encourage the use of generic drugs in order to control costs. U.S. Generic Drugs Market Dublin, May 16, 2025 (GLOBE NEWSWIRE) -- The "United States Generic Drugs Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033" report has been added to States Generic Drugs Market is expected to reach US$ 131.80 billion by 2033 from US$ 95.87 billion in 2024, with a CAGR of 3.60% from 2025 to 2033In terms of dosage, potency, safety, efficacy, mode of administration, and intended purpose, a generic medication is a pharmaceutical product that is bioequivalent to a brand-name medication. It is manufactured and sold following the expiration of the original brand-name drug's patent protection. These drugs go through extensive testing by regulatory bodies to guarantee their efficacy, safety, and quality, and they contain the same active components as their name-brand equivalents. A larger population may now afford and receive healthcare due to the many benefits of generic medications, which include reduced costs, improved accessibility, and more affordability. They are essential in boosting competition in the pharmaceutical industry, offering affordable substitutes for name-brand medications, and improving the general effectiveness of American healthcare Drivers for the Generic Drugs Market The region's growing drug shortageThe region's drug market is growing stronger as a result of the growing shortage. Brand-name medication shortages can be caused by a number of things, including as problems with manufacturing, difficulties with regulations, interruptions in the supply chain, and rising demand. Generic alternatives may become more popular as a result of these shortages. It may be difficult for pharmacies and healthcare professionals to keep a steady supply of name-brand drugs during a drug shortage. As a result, they turn to generic medications as a substitute to ensure continuity of patient care. Generic medications offer a feasible alternative during these shortages as they are generally widely available, produced by several producers, and competitively order to lessen the effect of medication shortages on patient treatment programs, medical professionals may also proactively prescribe generic medications as substitutes. Hospitals and healthcare systems may occasionally put policies in place to encourage the use of generic medications during shortages in order to maximize resource allocation and reduce patient care interruptions. Furthermore, using generic medications during drug shortages helps to solve short-term supply issues and eventually supports the expansion of the generic medicine market. This gives patients, payers, and healthcare professionals a chance to see the benefits and dependability of generic drugs, which could boost use and expand the market for them after the shortage is need for managing chronic illnessesThe industry is being positively impacted by the rising need for managing chronic diseases. Chronic illnesses that necessitate long-term medication use include diabetes, cardiovascular diseases, and respiratory disorders. Cost-effective medication options are essential as the population ages and the prevalence of chronic diseases rises. Furthermore, generic medications offer a cheap alternative for addressing chronic conditions. They guarantee comparable therapeutic effects at a fraction of the price because they contain the same active ingredients as their name-brand equivalents. This makes them highly attractive to patients, healthcare providers, and most common type of heart illness is coronary heart disease, according to a May 2023 report released by the Centers for illness Control and Prevention. Globally, one in twenty persons aged 20 and above, or around 5% of the population, suffers from coronary artery disease (CAD).Approximately 850,000 Americans suffer a heart attack each year, according to the same source. Of these, more than 200,000 people have already experienced a heart attack, and 605,000 have experienced their first. Since the need for affordable medications used during treatment is a major factor in the growth of the generic drugs market, this offers the US generic drug market a sizable market because generic medications have been shown to be safe and effective, medical professionals frequently give them priority when managing chronic illnesses. To increase adherence and cut expenses, they might recommend generic drugs as a first-line therapy choice or urge patients to move from name-brand drugs to their generic counterparts. Furthermore, payers - such as government programs and insurance companies - are aware of the potential cost savings associated with generic medications in the treatment of chronic illnesses. In order to make generic medications more accessible and affordable for patients, they might provide preferential coverage or reduced co-pays. Additionally, formulary management programs may include generics as preferred options, further driving their of patent cliffsThe term "patent cliff" describes the situation where patents on popular name-brand medications expire, allowing generic competitors to enter the market. Generic manufacturers are legally permitted to manufacture and market their medicine copies after a patent expires, frequently at much reduced costs. Additionally, patent cliffs are providing generic medicine producers with profitable chances to enter the market and provide less expensive substitutes for name-brand medications. Since there is more competition when patents expire, the market for generic medications is expanding. The cost of drugs is reduced and pricing transparency is encouraged by this greater competition, which benefits both patients and healthcare in order to find ways to cut costs and encourage the use of generics, pharmaceutical corporations and healthcare providers keep a careful eye on patent expirations. To benefit from the cost savings, they might aggressively move patients to generic alternatives. Furthermore, by establishing a competitive environment and stimulating innovation among generic manufacturers, patent cliffs in the pharmaceutical sector increase access to more reasonably priced pharmaceuticals and promote market expansion for generic in the United States Generic Drugs Market Regulatory hurdlesOne major obstacle in the US generic medication business is regulatory barriers. When it comes to sophisticated medications like biologics or biosimilars, the FDA approval procedure for generics can be drawn out. The Abbreviated New Drug Application (ANDA) process is complicated to navigate, involving a lot of paperwork and strict adherence to rules. Furthermore, brand-name companies' ""pay-for-delay"" agreements and patent litigation can postpone the entry of generics, decreasing competition and raising consumer costs. These regulatory hurdles often slow down market entry for VolatilityDue to variables like abrupt increases in demand, supply shortages, and market consolidation, price volatility is a significant problem in the generic medication industry in the United States. Generic prices might rise significantly due to unforeseen circumstances like production problems or market monopolies, which puts a burden on patients and healthcare systems. Furthermore, manufacturers' intense competition causes prices to drop quickly, which affects sustainability and profit margins. The market is unstable because to this volatility, which makes pricing tactics more difficult for insurers and producers States Generic Drugs Overview by StatesIn the United States, the need for generic medications varies by state, with major markets like California, Texas, and New York experiencing more demand because of their larger populations. Due to cost reductions and competition, states with strong healthcare systems and more affordable drug programs - like Florida and Pennsylvania - also have high rates of generic medicine use. Company Analysis: Overview, Key Persons, Sales Analysis, Recent Developments Teva Pharmaceuticals Aurobindo Pharma Sun Pharmaceuticals Abbott Laboratories Inc Lupin Pharmaceuticals, Inc Viatris Sandoz Dr. Reddy's Laboratories Key Attributes: Report Attribute Details No. of Pages 200 Forecast Period 2024 - 2033 Estimated Market Value (USD) in 2024 $95.87 Billion Forecasted Market Value (USD) by 2033 $131.8 Billion Compound Annual Growth Rate 3.6% Regions Covered United States Key Topics Covered: 1. US Generic Drug Market - Introduction1.1 What are Generic Drugs?1.2 Unbranded and Branded Generics1.3 Authorized Generics1.4 Commoditized and Specialty Generics2. Why is the US Generic Drug Market So Lucrative2.1 Patent Expiry of Blockbuster Drugs2.2 Significant Price Differential between Generics and Innovator Drugs2.3 Savings for the Government and Third-Party Payers2.4 Incentives for Dispensing and Prescribing Generic Drugs2.5 Reimbursement and Lower Co-payments3. Research & Methodology4. Executive Summary5. Market Dynamics5.1 Growth Drivers5.2 Challenges6. United States Generic Drugs Market7. Market Share Analysis7.1 By Type7.2 By Therapeutic Area7.3 By Drug Delivery7.4 By Distribution Channel7.5 By Age Group7.6 By Payment Type7.7 By State8. Type8.1 Branded Generics8.2 Unbranded Generics9. Therapeutic Area9.1 Heart Disease9.2 Mental Health9.3 Diabetes9.4 Epilepsy9.5 Cancers9.6 Allergies & Asthama9.7 Chronic Obstructive Pulmonary Diesase9.8 Alzheimer's Disease9.9 HIV/AIDS9.10 Crohn's colitis10. Drug Delivery10.1 Oral10.2 Injectables10.3 Dermal/Topical10.4 Inhalers11. Distribution Channel11.1 Specialty Pharmacy11.2 Retail Pharmacy11.3 Hospital Pharmacy11.4 Online Pharmacy12. Age Group12.1 Children (0-19 years)12.2 Young Adults (20-39 years)12.3 Adults (40-64 years)12.4 Seniors (Above 65 years)13. Payment Type13.1 Cash13.2 Commercial13.3 Medicaid13.4 Medicare D14. State14.1 California14.2 Texas14.3 New York14.4 Florida14.5 Pennsylvania14.6 Ohio14.7 Illinios14.8 North Carolina14.9 Georgia14.10 Michigan14.11 Others15. Porter's Five Forces Analysis15.1 Bargaining Power of Buyers15.2 Bargaining Power of Suppliers15.3 Degree of Rivalry15.4 Threat of New Entrants15.5 Threat of Substitutes16. SWOT Analysis16.1 Strengths16.2 Weaknesses16.3 Opportunities16.4 Threats17. Regulations in the US Generic Drug Industry17.1 Overview of Pharmaceutical Regulations17.2 Drug Applications17.3 Patents and Market Exclusivity17.4 Regulatory Requirements for Generic Drugs17.5 The Hatch-Waxman Act17.6 Certifications17.7 Other Important Considerations18. Key Players Analysis For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment U.S. Generic Drugs Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
