Eli Lilly Jumps as Weight-Loss Leadership Drives Another Breakout
LLY
Eli LillyLLY, the drugmaking giant behind Mounjaro and Zepbound, jumped approximately 1.9% to $1,268.23 Friday afternoon. Thursday’s dip did not scare buyers. It brought them back. The stock is once again charging toward its 52-week high as Wall Street bets that Lilly’s obesity-drug machine still has plenty of fuel
The numbers are monstrous. Second-quarter revenue rocketed 48% to $23 billion. Mounjaro sales exploded 91% to $9.94 billion, while Zepbound delivered another $4.93 billion after growing 46%. Lilly responded by lifting its full-year revenue forecast to between $85 billion and $87 billion. And this is not a two-drug story forever. According to Investor’s Business Daily, Lilly has 35 Phase 2 programs and another 41 therapies in Phase 3 trials
Still, the concentration risk is impossible to ignore. Mounjaro and Zepbound generated roughly 65% of quarterly revenue, putting manufacturing, insurance coverage and competitive pricing under a brutal spotlight. Yet investors keep paying up because Lilly keeps delivering growth that almost no company of its size can touch. Even better, the stock’s $1,268.23 market price remains 16.32% below its $1,520 GF Value estimate. Lilly is expensive at roughly 43 times trailing earningsbut Friday’s rally says Wall Street still sees firepower behind that premium.
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