7. Eli Lilly and Company (NYSE:LLY)
Total Number of Shares Owned: 4,888,710
Total Value of Shares Owned: $4,426,141,743
Number of Hedge Fund Investors: 100
Eli Lilly and Company (NYSE:LLY), a pharmaceutical leader in treatments for diabetes, cancer, and other serious conditions, is well-positioned for growth with a robust pipeline targeting diabetes, cancer, and neurodegenerative diseases. The success of Mounjaro solidifies Eli Lilly’s leadership in diabetes care and positions it to capitalize on the rising demand for obesity management, a rapidly expanding area with limited competition.
Additionally, Eli Lilly and Company (NYSE:LLY) has multiple promising therapies in late-stage clinical trials, which could further accelerate growth. Strategic partnerships with biotech firms enhance Eli Lilly and Company (NYSE:LLY)’s research capabilities and expedite the development of innovative therapies, keeping it at the forefront of medical advancements.
As healthcare systems increasingly prioritize effective chronic disease treatments, Eli Lilly and Company (NYSE:LLY)’s product portfolio aligns well with this trend toward health and wellness. In Q3 2024, Eli Lilly and Company (NYSE:LLY) reported a normalized EPS of $1.18, missing estimates by $0.29, and GAAP EPS of $1.07, falling short by $0.47. Revenue reached $11.44 billion, underperforming forecasts by $679.5 million.
Looking ahead, analysts anticipate a significant rebound in Q4, with a projected normalized EPS of $5.48 and revenue of $14.00 billion. Over the last 90 days, Eli Lilly and Company (NYSE:LLY) has received 19 upward EPS revisions, signaling increased confidence in its strong future performance.
PGIM Jennison Health Sciences Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q2 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY) is a diversified biopharmaceutical company with core franchises in Diabetes, Obesity, Immunology, Neurodegeneration, and Oncology. The company is one of the two global leaders in diabetes with blockbuster products in Trulicity and recently launched Mounjaro (tirzepatide) to serve this large underserved market. To date, the Mounjaro launch is the strongest for any diabetes drug ever launched, which we attribute to off label usage in the obesity indication as well as on label use in diabetes.
We believe the tirzepatide (the generic name for Mounjaro) franchise is also uniquely positioned to grow substantially from here thanks to its recent approval for obesity. To that note, in late 2023, Eli Lilly received approval for tirzepatide in obesity and is commercializing it for obesity under a new brand name, Zepbound. While still early in the launch, uptake has been extremely strong, exceeding that of both Wegovy and Mounjaro at the same timepoint in their launches.
While Alzheimer’s Disease has been a tough market for drug developers, Eli Lilly has breakthrough designation from the food and drug administration (FDA) for donanemab and recently presented Phase III pivotal trial data that positions donanemab as the most efficacious drug in the class. In June, the FDA advisory committee voted unanimously in favor of donanemab as an effective treatment where the benefits outweigh the risks, praising the therapy as innovative. Donanemab was then approved under the brand name Kisunla in early July…” (Click here to see more…)
