7. Eli Lilly And Company (NYSE:LLY)
Percentage of holdings in the fund: 1.79%
Number of Hedge Fund Holders: 100
Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical firm renowned for its innovative medications. This past year, the company released its 2023 ESG report, highlighting significant strides toward its sustainability goals. The company has reduced greenhouse gas emissions by more than 20% between 2020 and 2022, despite notable business growth. The report also showcases Eli Lilly’s commitment to diversity, with minority group members now holding 25% of U.S. management positions and women occupying 49% of management roles globally. Additionally, the Lilly 30×30 initiative has nearly doubled patient outreach in resource-limited settings, reaching 13 million people in 2022, up from 7.3 million in 2020.
Investor sentiment toward Eli Lilly and Company (NYSE:LLY) surged after the company’s second earnings upgrade this fiscal year. Second-quarter revenue grew 36% to $11.3 billion, driven by strong sales of diabetes and obesity treatments Mounjaro and Zepbound, along with breast cancer therapy Verzenio. The company expressed increased confidence in overcoming manufacturing challenges and raised its full-year revenue guidance midpoint by $3 billion to $46 billion.
In a recent update to its large-cap rankings, Wells Fargo analysts highlighted Eli Lilly and Company (NYSE:LLY)’s robust pipeline and potential to surpass market expectations in the coming years. The firm named Eli Lilly & Co. (NYSE:LLY) as its new top pick among large-cap pharmaceutical stocks, anticipating the company will outperform 2025 consensus estimates. Key drivers include upcoming events like the Surpass-CVOT trial in 2025 and pivotal results for Orforglipron and Retatrutide in 2025 and 2026.
The LLY stock recently hit an all-time high of $967, marking a 75.35% increase over the past year. Additionally, Eli Lilly and Company (NYSE:LLY) completed its acquisition of Morphic Holding, Inc., bolstering its immunology portfolio with MORF-057, a therapy for inflammatory bowel disease. The company also raised approximately $4.96 billion through a note sale, with plans to use the proceeds for general corporate purposes, including debt repayment and potential acquisitions.
Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its first quarter 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to robust fourth quarter sales of Mounjaro/ Zepbound, better-than-anticipated initial guidance for fiscal year 2024, and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.”
