Latest news with #LLY
Yahoo
2 days ago
- Business
- Yahoo
Why Eli Lilly Stock Sank 18% This Week
Key Points Eli Lilly is seeing strong growth from its weight loss drugs. Investors are nervous about tariffs on drugs and weak data from its upcoming pipeline. The stock is cheaper but still trades at a premium valuation. 10 stocks we like better than Eli Lilly › Shares of Eli Lilly (NYSE: LLY) sank 18% this week, according to data from S&P Global Market Intelligence. The drugmaker with a market cap of over $500 billion is in a sharp drawdown due to previously high expectations and weak data on its obesity drug pipeline. Even though the stock is in a 35% dip from all-time highs, Eli Lilly is up 300% in the last five years on the back of its blockbuster weight loss drugs. Here's why Lilly stock dipped after posting its second-quarter results. Expansion of weight loss drugs miss expectations The top-line figures looked strong for the second quarter. Revenue grew 38% year over year to $15.5 billion, driven by gains for its weight loss drugs. Mounjaro revenue grew 68% year over year to $5.2 billion in the quarter, while Zepbound grew 172% to $3.4 billion. Net income was also rock solid, up 91% to $5.56 billion. Investors were likely pleased to see these revenue gains and profit margins expand. There is still plenty of opportunity to get more and more obese people taking these weight-loss drugs around the globe, given that there are an estimated 1 billion or more obese people today. So why did the stock drop? For two reasons: First is the uncertainty over pharmaceutical tariffs placed by the United States on foreign imports, which could have a large impact on Eli Lilly's cost structure. Second is the data on results from a new weight-loss drug called orfoglipron showing that it had large drop-out rates when taken during a trial. This made investors pessimistic on the company's drug pipeline. Time to buy the dip? Eli Lilly is guiding for just over $20 in earnings per share (EPS) this year, and it trades at a forward price-to-earnings ratio (P/E) of 28. This is much cheaper than it traded at a year ago, but it is not a dirt cheap valuation and a bit of a surprise for a stock in a 35% drawdown. Its previous P/E was quite the premium. Growth from these blockbuster drugs should continue through the rest of this decade, which will lead to further operating leverage and growth for Eli Lilly in EPS. For that reason, the stock is likely a good buy for investors searching for a solid stock in the midst of this booming bull market. Should you buy stock in Eli Lilly right now? 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 $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Eli Lilly Stock Sank 18% This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
ETFs in Focus on Eli Lilly's Solid Q2 Earnings, Weak Obesity Data
Eli Lilly and Company LLY reported robust second-quarter 2025 results, wherein it beat estimates on both the top and bottom lines, driven by strong demand for its blockbuster weight loss and diabetes drugs. The drugmaker also raised its fiscal year outlook. However, shares of LLY tumbled 14% on disappointing weight-loss pill data, which overshadowed the company's strong second-quarter performance and upgraded full-year outlook. Investors seeking to buy the dip could bet on ETFs having the largest exposure to the drugmaker. These include iShares U.S. Pharmaceuticals ETF IHE, VanEck Vectors Pharmaceutical ETF PPH, Horizon Kinetics Medical ETF MEDX, Roundhill GLP-1 & Weight Loss ETF OZEM and Harbor Health Care ETF MEDI. Earnings in Focus Earnings per share came in at $6.31, surpassing the Zacks Consensus Estimate of $5.61 and improving 61% from the year-ago number. Revenues rose 38% to $15.56 billion and edged past the estimated $14.75 billion. The year-over-year sales growth was driven by robust sales of Zepbound and Mounjaro (see: all the Healthcare ETFs here).Diabetes drug Mounjaro's sales skyrocketed 68% to $5.2 billion, while breast cancer treatment Verzenio sales soared 12% year over year to $1.5 billion. Weight-loss drug Zepbound raked in about $1.24 billion in sales, up 172% year over year. The pharmaceutical giant increased its full-year outlook. It raised the revenue guidance to $62 billion from $58-$61 billion and the adjusted earnings per share guidance to $21.75-$23.00 from $20.78-$22.28. Clinical Trial Results The late-stage trial data on the experimental obesity pill, orforglipron, revealed that the patients on the highest dose (36 milligram dose) of orforglipron lost about 12% of their body weight (around 27.3 pounds) in a 72-week period. By comparison, patients on Novo Nordisk's NVO injectable Wegovy lost roughly 15% in late-stage trials over a similar most common side effects were nausea, vomiting and diarrhea, which occurred at rates similar to existing GLP-1 drugs. However, Lilly emphasized that no liver toxicity was observed, a concern with other oral weight-loss Intelligence analysts noted the results may cast doubt on Wall Street's $12 billion annual sales projection for orforglipron by 2030. The pharma giant aims to file for regulatory approval by the end of 2025, with a global launch expected by 2026 (read: Healthcare: Winning Sector ETF Amid Soft U.S. July Jobs Report) ETFs in Focus iShares U.S. Pharmaceuticals ETF (IHE)iShares U.S. Pharmaceuticals ETF offers exposure to 36 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Eli Lilly takes the second spot, accounting for a 20.9% share. iShares U.S. Pharmaceuticals ETF has $555.5 million in AUM and charges 38 bps in fees and expenses. Volume is lower as it exchanges about 35,000 shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a High risk Vectors Pharmaceutical ETF (PPH)VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Eli Lilly occupying the top position at 16.3% of the assets. VanEck Vectors Pharmaceutical ETF has amassed $498.7 million in its asset base and trades in a good volume of about 465,000 shares a day. It charges 36 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk Kinetics Medical ETF (MEDX)Horizon Kinetics Medical ETF is an actively managed ETF that invests primarily in patented first-line pharmaceuticals and biologics, as these products tend to have high-profit margins and significant barriers to entry. It holds 35 stocks in its basket, with Eli Lilly taking the top spot at 13.3% of the portfolio. Horizon Kinetics Medical ETF has gathered $16.7 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 3000 GLP-1 & Weight Loss ETF (OZEM)Roundhill GLP-1 & Weight Loss ETF is the world's first GLP-1 ETF and is actively managed. Roundhill believes that weight loss drugs, including GLP-1 agonists, represent one of the most revolutionary advancements in the global pharmaceutical industry. OZEM holds 23 stocks in its basket, with LLY occupying the top position at 14.29% share. Roundhill GLP-1 & Weight Loss ETF has accumulated $31.6 million in its asset base and charges 59 bps in annual fees. It trades in an average daily volume of 20,00 Health Care ETF (MEDI)Harbor Health Care ETF is actively managed by Westfield Capital and primarily invests in the securities of companies principally engaged in the research, development, production or distribution of products and services related to the healthcare industry. MEDI has a concentrated portfolio of 37 companies that Westfield believes are best positioned to benefit from the secular growth and innovation within the U.S. healthcare system, with long-term alpha potential. Eli Lilly occupies the second position with a 14.5% share. Harbor Health Care ETF has accumulated $16.6 million in its asset base while trading in an average daily volume of 2000 shares. It charges 80 bps in annual fees. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports Roundhill GLP-1 & Weight Loss ETF (OZEM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
ETFs in Focus on Eli Lilly's Solid Q2 Earnings, Weak Obesity Data
Eli Lilly and Company LLY reported robust second-quarter 2025 results, wherein it beat estimates on both the top and bottom lines, driven by strong demand for its blockbuster weight loss and diabetes drugs. The drugmaker also raised its fiscal year outlook. However, shares of LLY tumbled 14% on disappointing weight-loss pill data, which overshadowed the company's strong second-quarter performance and upgraded full-year outlook. Investors seeking to buy the dip could bet on ETFs having the largest exposure to the drugmaker. These include iShares U.S. Pharmaceuticals ETF IHE, VanEck Vectors Pharmaceutical ETF PPH, Horizon Kinetics Medical ETF MEDX, Roundhill GLP-1 & Weight Loss ETF OZEM and Harbor Health Care ETF MEDI. Earnings in Focus Earnings per share came in at $6.31, surpassing the Zacks Consensus Estimate of $5.61 and improving 61% from the year-ago number. Revenues rose 38% to $15.56 billion and edged past the estimated $14.75 billion. The year-over-year sales growth was driven by robust sales of Zepbound and Mounjaro (see: all the Healthcare ETFs here). Diabetes drug Mounjaro's sales skyrocketed 68% to $5.2 billion, while breast cancer treatment Verzenio sales soared 12% year over year to $1.5 billion. Weight-loss drug Zepbound raked in about $1.24 billion in sales, up 172% year over year. The pharmaceutical giant increased its full-year outlook. It raised the revenue guidance to $62 billion from $58-$61 billion and the adjusted earnings per share guidance to $21.75-$23.00 from $20.78-$22.28. Clinical Trial Results The late-stage trial data on the experimental obesity pill, orforglipron, revealed that the patients on the highest dose (36 milligram dose) of orforglipron lost about 12% of their body weight (around 27.3 pounds) in a 72-week period. By comparison, patients on Novo Nordisk's NVO injectable Wegovy lost roughly 15% in late-stage trials over a similar period. The most common side effects were nausea, vomiting and diarrhea, which occurred at rates similar to existing GLP-1 drugs. However, Lilly emphasized that no liver toxicity was observed, a concern with other oral weight-loss candidates. Bloomberg Intelligence analysts noted the results may cast doubt on Wall Street's $12 billion annual sales projection for orforglipron by 2030. The pharma giant aims to file for regulatory approval by the end of 2025, with a global launch expected by 2026 (read: Healthcare: Winning Sector ETF Amid Soft U.S. July Jobs Report) ETFs in Focus iShares U.S. Pharmaceuticals ETF (IHE) iShares U.S. Pharmaceuticals ETF offers exposure to 36 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Eli Lilly takes the second spot, accounting for a 20.9% share. iShares U.S. Pharmaceuticals ETF has $555.5 million in AUM and charges 38 bps in fees and expenses. Volume is lower as it exchanges about 35,000 shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook. VanEck Vectors Pharmaceutical ETF (PPH) VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Eli Lilly occupying the top position at 16.3% of the assets. VanEck Vectors Pharmaceutical ETF has amassed $498.7 million in its asset base and trades in a good volume of about 465,000 shares a day. It charges 36 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook. Horizon Kinetics Medical ETF (MEDX) Horizon Kinetics Medical ETF is an actively managed ETF that invests primarily in patented first-line pharmaceuticals and biologics, as these products tend to have high-profit margins and significant barriers to entry. It holds 35 stocks in its basket, with Eli Lilly taking the top spot at 13.3% of the portfolio. Horizon Kinetics Medical ETF has gathered $16.7 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 3000 shares. Roundhill GLP-1 & Weight Loss ETF (OZEM) Roundhill GLP-1 & Weight Loss ETF is the world's first GLP-1 ETF and is actively managed. Roundhill believes that weight loss drugs, including GLP-1 agonists, represent one of the most revolutionary advancements in the global pharmaceutical industry. OZEM holds 23 stocks in its basket, with LLY occupying the top position at 14.29% share. Roundhill GLP-1 & Weight Loss ETF has accumulated $31.6 million in its asset base and charges 59 bps in annual fees. It trades in an average daily volume of 20,00 shares. Harbor Health Care ETF (MEDI) Harbor Health Care ETF is actively managed by Westfield Capital and primarily invests in the securities of companies principally engaged in the research, development, production or distribution of products and services related to the healthcare industry. MEDI has a concentrated portfolio of 37 companies that Westfield believes are best positioned to benefit from the secular growth and innovation within the U.S. healthcare system, with long-term alpha potential. Eli Lilly occupies the second position with a 14.5% share. Harbor Health Care ETF has accumulated $16.6 million in its asset base while trading in an average daily volume of 2000 shares. It charges 80 bps in annual fees. Boost Your Portfolio with Our Top ETF Insights Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week. Don't miss out on this valuable resource. It's free! Get it now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report VanEck Pharmaceutical ETF (PPH): ETF Research Reports Roundhill GLP-1 & Weight Loss ETF (OZEM): ETF Research Reports This article originally published on Zacks Investment Research (
Globe and Mail
3 days ago
- Business
- Globe and Mail
Eli Lilly Stock Is On Track for Its Worst Performance Since 2008. Should Investors Be Worried?
Key Points Eli Lilly reported strong earnings for the second quarter, beating on the top and bottom lines. Disappointing trial results for orforglipron led to a sharp crash in its share price on Thursday. The stock hasn't been trading this low since early 2024. 10 stocks we like better than Eli Lilly › Eli Lilly (NYSE: LLY) stock is down big this year. It has lost 17% of its value thus far in 2025 (returns as of Aug. 7). It's not usual territory for the top healthcare stock to be in, given the tremendous growth it has achieved in recent years. On Thursday, the stock crashed 14% after reporting its recent earnings numbers, despite them seemingly looking strong. The stock is struggling badly, and if things don't improve in short order, Eli Lilly will be on track for its worst performance since 2008. Is the company in big trouble, or could this actually be a great time to invest in the healthcare stock, with it recently hitting a new 52-week low? 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 » Earnings disappointment, despite guidance raise On Thursday, Eli Lilly reported its second-quarter numbers for 2025. For the period ending June 30, its sales rose by 38% to $15.6 billion, which was better than what analysts were projecting -- $14.7 billion. Net income nearly doubled, rising by 91% to $5.7 billion. Its adjusted per-share profit of $6.31 came in better than Wall Street estimates of $5.57. The company boosted its guidance for the year on both the top and bottom lines, but it cautioned that those estimates did not factor in the effect that tariffs on imported pharmaceuticals may have on its business. Another factor which weighed on the stock was trial data on the company's obesity pill, orforglipron. On the highest dose, patients lost over 12% of their body weight, which wasn't as much as analysts were expecting. Given that people using the company's GLP-1 weight loss drug, Zepbound, can lose over 25% of their body weight, investors may be worried that Eli Lilly's future growth may not be as promising as it may have looked before. Eli Lilly stock hasn't been performing this badly since the Great Recession Prior to Thursday's sell-off, the stock was on track for its worst year since 2016. But after the underwhelming news from the orforglipron trial, the stock is now looking like it may do worse than the near 13% decline it incurred in 2016. It could now be headed for its worst performance since the Great Recession, in 2008, when its shares fell by almost 25%. Year S&P 500 Return Eli Lilly Stock Return 2024 23.31% 32.44% 2023 24.23% 59.34% 2022 -19.44% 32.45% 2021 26.89% 63.60% 2020 16.26% 28.46% 2019 28.88% 13.58% 2018 -6.24% 37.01% 2017 19.42% 14.83% 2016 9.54% -12.71% 2015 -0.73% 22.13% 2014 11.39% 35.27% 2013 29.60% 3.41% 2012 13.41% 18.67% 2011 0.00% 18.61% 2010 12.78% -1.88% 2009 23.45% -11.32% 2008 -38.49% -24.57% Table by author. Data source: YCharts. Eli Lilly's stock highlights one of the big risks with investing in a stock that's trading at a high valuation -- expectations are also elevated. It's normally trading at over 60 times earnings and sometimes even more than 100 times its trailing profits. Investors have been paying a big premium for Eli Lilly because of the expectation that it will achieve even more growth in the years ahead, due to its promising GLP-1 drugs. When news came that orforglipron perhaps wouldn't be as good as expected, the stock nosedived. Should you buy Eli Lilly stock right now? Eli Lilly is a top healthcare company to invest in for the long haul, and I think that as long as you aren't in a rush to turn a quick profit, it can make for an excellent buy. Unfortunately, the market can sometimes be fickle and react strongly to any kind of negative developments. But the fact remains that Eli Lilly is a leader in the GLP-1 space and its business isn't dependent on just a single drug. It's working on getting bigger and developing more products. Poor trial results from orforglipron may be disappointing, but they shouldn't deter you from investing in what's still an excellent business overall. Shares of Eli Lilly haven't been this low since early 2024, and now may be a great time to invest in the business for the long haul. Should you invest $1,000 in Eli Lilly right now? Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
Globe and Mail
3 days ago
- Business
- Globe and Mail
Does This $856 Million Investment Make Eli Lilly Stock a Buy?
Key Points Eli Lilly is investing money to help a smaller biotech develop a new class of small-molecule drugs. This move is another in a long list of deals it has made recently to strengthen its operations. Lilly's commitment to improving its already strong business makes the stock attractive. 10 stocks we like better than Eli Lilly › Success often breeds success. Highly profitable companies have more capital to reinvest in the business and pursue high-growth opportunities. Take Eli Lilly (NYSE: LLY), a pharmaceutical giant that has been performing well in recent years. The drugmaker is not resting on its laurels. Lilly has been signing deals and looking for the next big thing. It recently penned an agreement worth nearly $1 billion in another promising potential avenue. Let's find out what that is and whether it makes the company's shares more attractive. Looking for a new class of drugs On July 24, Gate Biosciences, a privately held biotech, announced it had signed an agreement with Eli Lilly to co-develop a potential new class of drugs called "Molecular Gates." Gate Biosciences received an up-front payment of an undisclosed amount and will be eligible for milestone payments and potential future royalties, in a deal valued at about $856 million, which also includes an equity investment for Gate. Eli Lilly appears to be interested in Gate's approach, which could revolutionize the way we treat many diseases by targeting "difficult to drug" proteins. Here's the basic idea: Many therapies work by modifying, inhibiting, or otherwise disrupting the proteins that play a role in the diseases they treat. However, some proteins involved in certain conditions have characteristics that make them hard to target with the traditional approaches -- these are what Gate Biosciences calls difficult-to-drug proteins. The biotech is developing a novel mechanism that could help target even these proteins and unlock potential therapies for many conditions that are currently untreated or undertreated. Focusing on the bigger picture Any company that can create a new class of drugs and target otherwise difficult-to-treat diseases could make a fortune. However, Gate Biosciences, founded in 2021, is still in the early stages of this project. It will take many years before we see the results of its efforts, and they might not be positive. So this approach is still somewhat speculative for now. Eli Lilly knows that, although the pharmaceutical company probably sees some promise in Gate's work. Even so, this investment won't move the needle anytime soon for Lilly, but there is an even more important point to focus on. The company has achieved considerable success in recent years, generating rapidly growing revenue and earnings. Its core therapeutic areas continue to perform well, with sales of products such as Mounjaro for diabetes and Zepbound for obesity moving in the right direction. But management is not satisfied. That's why it has made a series of moves recently, including acquisitions and licensing agreements. In July, it closed its buyout of Verve Therapeutics, a smaller biotech working on medicines for cardiovascular diseases. In May, it announced it would acquire SiteOne Therapeutics, a drugmaker with a promising investigational medicine for pain. In January, it grew its oncology pipeline through the acquisition of a candidate called STX-478 from the privately held biotech Scorpion Therapeutics. These moves and others show that Eli Lilly is thinking years ahead, a sign of good management. By themselves, none of these licensing deals or acquisitions make the stock a buy. There are better reasons to consider it. The company remains a top player in diabetes and is emerging as the leader in the burgeoning market for weight management, all while growing its revenue significantly faster than its similarly sized peers. It also has a deep lineup that includes such promising programs as orforglipron, a potential oral weight-loss medicine, and retatrutide, which mimics the action of three gut hormones and could prove more effective than current leading anti-obesity drugs. Newer medicines and pipeline candidates in other areas -- including immunology, oncology, and Alzheimer's disease -- strengthen the company's business. And it pays a regular dividend that has more than doubled over the past five years. All this makes the stock attractive. However, Eli Lilly's commitment to continually seeking out the next big thing and planning for patent cliffs well in advance are even better reasons to buy. Should you invest $1,000 in Eli Lilly right now? Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
