4) Eli Lilly and Company (NYSE:LLY)
% Gain on a YTD. Basis: ~51%
Number of Hedge Fund Holders: 100
El Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals worldwide.
Market experts opine that the company’s long-term growth trajectory is expected to be aided by its patents, economies of scale, and a powerful distribution network. In Q2 2024, Eli Lilly and Company (NYSE:LLY) was able to achieve key pipeline milestones, including the approval of Kisunla for Alzheimer’s disease and the submission of tirzepatide for obstructive sleep apnea. The company has raised its full-year revenue outlook to between $45.4 billion – $46.6 billion. It continues to invest significantly in expanding manufacturing capabilities, with more than $18 billion committed to facilities.
Eli Lilly and Company (NYSE:LLY) remains confident in its supply outlook and the ability to meet increased demand. In H2 2024, the company plans to increase promotional channels and scale R&D. Wall Street analysts expect that its strategic investments in research and development, together with manufacturing capabilities, place it well for continued progress and market leadership.
Recently, Eli Lilly and Company (NYSE:LLY) announced a $4.5 billion investment to create the Lilly Medicine Foundry. This is a new center for advanced manufacturing and drug development. This will enable the company to develop innovative solutions to optimize manufacturing processes and improve capacity for clinical trial medicines, while, at the same time, reducing costs.
Truist Financial restated a “Buy” rating on the shares of Eli Lilly and Company (NYSE:LLY), issuing a $1,000.00 price objective on 25th June. PGIM Jennison Health Sciences Fund released its second quarter 2024 investor letter. Here is what the fund said:
“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. Eli Lilly also has exciting franchises in dermatology, immunology, and oncology that are starting to add meaningfully to growth. With a proven history of strong commercial execution and one of the highest research and development (R&D) success rates in the industry, we see opportunity for continued success. With a lack of meaningful patent expirations for the rest of the decade. Eli Lilly is uniquely positioned amongst its larger-cap peers. Recent positive performance has been driven by the continued strong growth of Mounjaro and Zepbound, which led to a big guidance raise on the 1Q call, an unusual action for Eli Lilly this early in the year, which speaks to their confidence in the strong trends they are seeing.”
