2. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 106
Eli Lilly & Company (NYSE:LLY) is a global pharmaceutical corporation that develops, manufactures, and sells a wide range of medicines. Founded in 1876, the company has grown into one of the world’s largest pharmaceutical firms, focusing on areas such as diabetes, oncology, immunology, and neuroscience.
The company is aggressively working toward a strong plan focused on increasing the range of products it offers and improving its production capacity. With recent achievements including the FDA’s clearance of Kisunla for Alzheimer’s and the filing of tirzepatide for obstructive sleep apnea in the US and the EU, the firm is concentrating on tackling important health challenges like obesity and Alzheimer’s disease. With 11 novel compounds in clinical trials to treat obesity and other chronic illnesses, Eli Lilly & Company (NYSE:LLY) is also making significant investments in its pipeline. To improve its immunology pipeline with oral integrin therapies—which are intended to treat severe chronic illnesses—the business also recently agreed to purchase Morphic Holding, Inc.
With a 36% rise in revenue over the same period last year, Eli Lilly & Company (NYSE:LLY) achieved outstanding success for the second quarter of 2024. Strong sales of Mounjaro, Zepbound, and Verzenio were the main drivers of this expansion. The market demand for these new items and their successful launch led to a 68% increase in earnings per share. The company has increased its full-year revenue projection by $3 billion as a result of these accomplishments, demonstrating its confidence in its trajectory of future growth.
Eli Lilly and Company (NYSE:LLY) also revealed a substantial $4.5 billion commitment to build the Lilly Medicine Foundry on October 2. The LEAP Research and Innovation District in Lebanon, Indiana, will house this new facility for drug discovery and advanced manufacturing. Lilly will be able to investigate new production techniques and expand the capacity for clinical trial medications because of the facility’s unique integration of drug research and manufacture in one location.
According to Insider Monkey’s database of over 900 hedge funds as of Q3 2024, Eli Lilly and Company (NYSE:LLY) was held by 106 hedge funds. Baron Funds stated the following regarding Eli Lilly and Company in its “Baron Health Care Fund” 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.”
