Jim Cramer on Nvidia Plus Other Stocks

2. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 106

Here’s what Cramer had to say about Eli Lilly and Company (NYSE:LLY):

“You see the kind of bargain hunting I’m talking about everywhere these days, even in pharma… How could the price of one class of drugs be so important? I think it’s because there’s a scarcity of GLP-1s, even with Eli Lilly… going all out. It’s only going to get better though because Lilly’s spending billions to build more plants in order to meet the demand for the wonder drug. No one else can do that. They aren’t rich enough. The GLP-1s, they represent value because it’s not just about diabetes and weight loss, they’re lifesavers… GLP-1’s not some simple hack drug, it’s a revolution in healthcare. No wonder Eli Lilly can charge such a huge premium. It’s valuable.”

Eli Lilly (NYSE:LLY), a prominent global pharmaceutical company, is known for its broad portfolio of treatments, including insulin products for diabetes and therapies for obesity and type 2 diabetes. The company’s diabetes drug Mounjaro and its sibling medication for chronic weight management, Zepbound, have quickly become major contributors to its success.

In its most recent third-quarter earnings report, Eli Lilly saw a 20% year-over-year increase in revenue, reaching $11.4 billion. Mounjaro alone generated $3.11 billion in sales, marking a striking 121% growth compared to the same period last year. Zepbound earned nearly $1.26 billion in sales during this quarter.

In September, Eli Lilly (NYSE:LLY) committed nearly $2 billion to expand its manufacturing operations in Ireland. This brings the total investments in building, upgrading, and acquiring manufacturing facilities since 2020 to over $20 billion. In addition to this $20 billion commitment, the company also unveiled a separate $4.5 billion investment in October to create the Lilly Medicine Foundry.

This unique facility will focus on research and development for manufacturing process design and the production of high-quality investigational medicines for its clinical trials. The Lilly Medicine Foundry is set to open in late 2027 in Lebanon, Indiana.