Goldman Sachs’ List Of Stocks That Hedge & Mutual Funds Love & Hate: 28 Stocks On The Mutual and Hedge Funds Radar

18. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders In Q2 2024: 100

Category: Most popular with HFs and underweight among mutual funds

Eli Lilly and Company (NYSE:LLY) is a pharmaceutical giant that is known for its insulin and more recently, its weight loss drugs. The firm’s shares are 55% year to date as it has become one of the leading players in the global weight loss drug market. Yet, the tail end of 2024 has seen an evolved weight loss drug market. This is because some of the earliest GLP weight loss products were introduced in 2014, meaning that their patents are about to expire. For pharmaceutical firms, expired patents increase the number of generics in the market which increases competition. Consequently, firms like Eli Lilly and Company (NYSE:LLY) which are market leaders have to either reduce prices for existing drugs or introduce better products to ensure that the revenue continues to flow. As for Eli Lilly and Company (NYSE:LLY), it is currently ramping up a skin disease drug and targeting new treatments for diabetes, obesity, cancer, Alzheimer’s, and other ailments.

Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q2 2024 investor letter. Here is what the fund said:

“In biopharmaceuticals, we remain bullish on the market opportunity for new diabetes and obesity medicines. In June at a medical meeting, the principal investigators of the SURMOUNT-OSA trial presented the full data which demonstrated that Eli Lilly and Company’s Tirzepatide reduced obstructive sleep apnea in adults with obesity by up to 62.8%, and up to 51.5% of participants met the criteria for disease resolution. This impressive data set paves the way for Tirzepatide to be used as a treatment for obstructive sleep apnea in overweight and obese individuals.”