10 Best Medical Stocks to Buy Now

3. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 100 

Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical giant that develops, manufactures, and sells a wide range of medications. At its core, Eli Lilly focuses on creating innovative drugs to treat various medical conditions, including diabetes, cancer, autoimmune disorders, and neurological diseases.

Zepbound and Mounjaro, two medications from Eli Lilly and Company (NYSE:LLY), have been approved to treat obesity and type 2 diabetes, respectively, and are anticipated to bolster the company’s present revenue base. Tirzepatide is the same active ingredient in both therapies. Zepbound brought in $1.2 billion and Mounjaro about $3.1 billion respectively in the second quarter. By 2029, analysts project a $50 billion increase in medicine sales.

In Q2 2024, out of the total number of hedge funds tracked by Insider Monkey, 100 hedge funds held stakes in the stock with Fisher Asset Management being the largest one of these with 4,888,710 worth $4,426,141,743.

Here is what Baron Funds, an investment management company, said about Eli Lilly and Company (NYSE:LLY) in its second-quarter 2024 investor letter.

“Shares of global pharmaceutical company Eli Lilly and Company (NYSE:LLY) increased on continued investor enthusiasm around GLP-1 drugs for diabetes and obesity. We remain shareholders. Lilly’s Mounjaro/Zepbound not only offers superb blood sugar control for diabetics but can drive 20%-plus weight loss and likely improve cardiovascular outcomes in both diabetic and non-diabetic obese patients. Lilly is developing next-generation drugs, including retatrutide, which drives approximately 25% weight loss, and orforglipron, a daily pill that produces approximately 15% weight loss. In the U.S. alone, there are 32 million Type 2 diabetics and an additional 105 million obese patients who we estimate would qualify for GLP-1 drugs. Although supply and access are limited near term, we think GLP-1 drugs will become the standard of care for both diabetes and obesity and will become a $150 billion-plus category. We see Lilly setting a high efficacy bar and capturing significant long-term market share. We think the adoption of GLP-1s will drive Lilly to triple total revenue by 2030.”