Micah Zimmerman, The Motley Fool
Wed, August 26, 2026 at 3:05 PM UTC
Key Points
Obesity drugs like Mounjaro and Zepbound could help the drugmaker power ahead for years
Its Alzheimer’s drug Kisunla and broad pipeline add another layer of long-term potential
My take: Lilly looks like a compelling long-term company, but its premium valuation merits consideration
In the second quarter of this year, Ken Griffin nearly quadrupled Citadel’s stake inEli Lilly(NYSE: LLY), adding around 740,000 shares and making it one of his fund’s top positions. A billionaire who can buy almost anything chose to lean into this pharma stock. I think that matters
Griffin is backing a company that sits at the center of two of the biggest medical shifts of this decade: obesity and Alzheimer’s disease
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On the obesity side, Lilly’s incretin drugs Mounjaro and Zepbound have turned into a franchise that is changing how doctors treat weight and diabetes. In the second quarter of 2026, Eli Lilly reported revenue of about $23.0 billion, up 48% year over year, driven mainly by volume growth in Mounjaro and Zepbound. Mounjaro alone brought in roughly $9.9 billion in sales, with Zepbound adding another $4.9 billion as demand grew across the United States and abroad
Those drugs are not the end of the story. Lilly’s pipeline is packed with next-generation obesity and cardiometabolic candidates. The company has late-stage programs such as retatrutide and orforglipron, and dozens of discovery projects focused on incretins, amylins, and new targets for obesity, diabetes, cardiovascular disease, and kidney disease. That tells me management is not content to ride one product cycle. It is building a family of medicines around metabolic health that could support growth long after the first wave of GLP‑1 drugs matures.
Then there is Alzheimer’s. Lilly’s drug Kisunla, known generically as donanemab, has gained full FDA approval in the United States for early symptomatic Alzheimer’s disease and now has marketing authorization in Europe as well. It is a monthly infusion that targets amyloid plaques and is indicated for patients with mild cognitive impairment or mild dementia who have confirmed amyloid pathology. Alzheimer’s treatments are not simple or risk-free, yet having a disease‑modifying therapy on the market gives Lilly a foothold in a huge and painful area of medicine where competitors are still working to catch up.
Eli Lilly is a force that isn’t going away
When I look at that combination, I see a company with two powerful growth engines. One helps people lose weight and control blood sugar. The other aims to slow a disease that erodes memories. Alongside these, Lilly still has solid franchises in oncology, immunology, and other fields, plus new programs in areas such as liver disease and sleep apnea tied to obesity. That breadth gives the company room to absorb setbacks in any one trial while still pushing the overall portfolio forward
Of course, Lilly’s stock has already run so very hard. A year ago, the stock was less than $700. Now, it’s roughly $1,240. I’ve seen recent price targets cluster around an average near $1,366 per share, with highs reaching $1,600. The valuation screens rich against older pharma peers. That is where investor psychology comes in. Lilly should not be viewed as a slow dividend payer. It is seen as a growth company in a lab coat, tied to themes that people feel in daily life, from weight loss to cognitive decline.
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So, is it too late? I think that depends on your time horizon. If you want a quick trade, the stock’s move may feel stretched. If you are building a long-term portfolio and want exposure to obesity, Alzheimer’s, and broader innovation in metabolic and neurological disease, Lilly still looks compelling. Griffin’s decision to make it a larger slice of an $875 billion portfolio suggests he sees more runway ahead. In my view, Eli Lilly is a good long-term buy
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Micah Zimmermanhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool has adisclosure policy
