Billionaire Ken Fisher’s Top 15 Stock Picks Heading into 2025

7. Eli Lilly and Company (NYSE:LLY)

Fisher Asset Management’s Equity Stake: $4.48 Billion

Number of Hedge Funds Holding Stakes: 106

Eli Lilly & Company (NYSE:LLY) is a biotechnology company that discovers, develops, and sells human pharmaceuticals. LLY’s main products are Verzenio for cancer, Mounjaro, Zepbound, Jardiance, Trulicity, Humalog, and Humulin for heart and metabolic conditions, and Taltz and Olumiant for immune system issues.

It is one of the big players in the sector owing to solid demand for its diabetes and weight loss drugs, which have propelled revenue and earnings growth. In the first nine months of the year, the stock was up by 62%. Nevertheless, the stock took a hit as the company reported a slight pullback in its full-year guidance.

On October 30, 2024, Eli Lilly & Company (NYSE:LLY) said it expects revenues of between $45.4 billion and $46 billion, down from the previous guidance of $45.4 billion to $46.4 billion. Despite the minor adjustment, LLY’s product lineup remains strong. Mounjaro and Zepbound are some of the most sought-after diabetes and weight loss drugs.

In the first half of the year, Mounjaro brought in $4.9 billion in revenue, up from $1.5 billion over the same period last year. Zepbound, approved for weight loss in obese adults, is also in high demand, and Eli Lilly & Company (NYSE:LLY) is working hard to meet it. The company is building a new $4.5 billion advanced manufacturing and drug development center to keep up with the growing demand.

The addressable market for weight loss treatments is poised to hit $100 billion by 2030. Therefore, Eli Lilly & Company (NYSE:LLY) has tremendous opportunities with its current pipeline, even as it works on new drugs.

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.”