{"id":623191,"date":"2026-06-05T19:23:18","date_gmt":"2026-06-05T19:23:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/623191\/"},"modified":"2026-06-05T19:23:18","modified_gmt":"2026-06-05T19:23:18","slug":"3-reasons-eli-lilly-remains-a-buy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/623191\/","title":{"rendered":"3 Reasons Eli Lilly Remains a Buy"},"content":{"rendered":"\n

Eli Lilly (NYSE: LLY) became the first $1 trillion pharmaceutical<\/a> company late last year, built on the strength of its GLP-1 empire used for diabetes and weight loss. Pharmaceutical stocks have struggled in 2026, but Eli Lilly’s shares are up more than 45% over the past year. And over the past three months, its pedestrian 2% rise has outpaced its competitors.<\/p>\n

The Indianapolis-based healthcare<\/a> company has several catalysts that should continue to drive its share growth, led by its expanded GLP-1 earnings, its willingness to invest its cash to improve its pipeline through acquisitions, and the continued rise of its high-margin specialty drugs. Here’s more on all three.<\/p>\n

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\"A Image source: Getty Images. 1. Its GLP-1 franchise is expanding rapidly <\/p>\n

The primary engine behind the huge revenue expansion is its Mounjaro, powered by the active ingredient tirzepatide. The drug, sold as Mounjaro for type 2 diabetes and Zepbound for obesity, helped grow revenue by more than 56% year over year to $19.8 billion in the first quarter, and improved earnings per share (EPS) to $8.55, up 156% over the same quarter a year ago.<\/p>\n

Those numbers don’t reflect the impact that Foundayo, a daily GLP-1 pill, will have. The Food and Drug Administration (FDA) approved Foundayo on April 1 to treat adults with weight-related medical problems. The therapy will attract users who dislike needles and will likely be cheaper to manufacture than injectables.<\/p>\n

The company is also seeing more pharmacy benefit managers reinstate Zepbound as a preferred drug, opening it up to more users.<\/p>\n

2. Lilly is using its profits to broaden its portfolio <\/p>\n

On May 26, Lilly announced it was spending $3.83 billion to buy three biotech companies, gaining promising pipeline candidates from all three. It spent $1.5 billion to buy Curevo, gaining amezosvatein, a vaccine candidate for the prevention of shingles in adults.<\/p>\n

It paid $780 million for LimmaTech Biologics, known for its pipeline of vaccines to treat biological pathogens, most notably LTB-SA7, a vaccine against the leading cause of surgical-site infection.<\/p>\n

And for $1.55 billion, it acquired the Vaccine Company, known for its vaccines to treat various viral pathogens, most notably an unnamed drug for the Epstein-Barr virus.<\/p>\n

In April, the company spent $2.3 billion on Ajax Therapeutics, known for promising therapies to treat rare chronic blood cancers.<\/p>\n

3. Lilly keeps adding indications <\/p>\n

While its GLP-1 drugs are understandably getting a lot of attention, Lilly’s immunology, oncology, and neuroscience therapies grew revenue by 160% year over year in the first quarter.<\/p>\n

There’s more on the way. The company has 42 phase 3 trials and 32 phase 2 trials, even before its most recent acquisitions. Over the next few years, management anticipates approval for several oncology treatments, including breast cancer drug imlunestrant as a combination therapy with other targeted agents; and Alzheimer’s therapy donanemab, which, while approved by the FDA in the U.S., is seeking worldwide approvals.<\/p>\n

Expensive, maybe, but worth it <\/p>\n

Lilly shares trade at one of the highest valuations among major pharmaceutical companies: around 29 times its projected earnings for the next 12 months. That premium reflects expectations that demand for its GLP-1 drugs will remain exceptionally strong. The company forecasts 2026 revenue between $82 million to $85 million, up 28% at the midpoint, and EPS from $35.50 to $37, an increase of 49.7% at the midpoint.<\/p>\n

The stock has considerable momentum, and its ability to make its GLP-1 drugs more available provides the revenue it needs to develop the rest of its growing portfolio.<\/p>\n

Should you buy stock in Eli Lilly right now? <\/p>\n

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James Halley<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool has a disclosure policy<\/a>.<\/p>\n

3 Reasons Eli Lilly Remains a Buy<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"Eli Lilly (NYSE: LLY) became the first $1 trillion pharmaceutical company late last year, built on the strength…\n","protected":false},"author":2,"featured_media":623192,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[35919,102,2960,19203,56,54,55],"class_list":["post-623191","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-eli-lilly","tag-health","tag-healthcare","tag-revenue","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/623191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=623191"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/623191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/623192"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=623191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=623191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=623191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}