News about Eli Lilly

Eli Lilly (LLY) returned 36.37% over the six months to October 15, compared with 21.5% for the Insider Monkey Billionaire Index and 15.74% for the State Street SPDR S&P 500 ETF Trust. Mounjaro and Zepbound still drive most growth, while Lilly is expanding with the oral obesity drug Foundayo, international markets and treatments beyond obesity, and is investing an additional $4.5 billion in its Indiana facilities. In the second quarter of 2026, revenue rose 48% on a 60% increase in volume, but realized prices fell 13%, partly due to lower international prices, while immunology, oncology and neuroscience products grew 121% combined. LLY trades at 38.64x trailing and 24.39x forward earnings, with forecasts pointing to earnings roughly doubling from last year to next year. The article also flags risks including pricing pressure, heavy spending on production, research and acquisitions, and significant acquired R&D charges in the second quarter.

Novo's shares have fallen more than 60% after losing GLP-1 market share to Eli Lilly, and the stock trades at 11.8x forward earnings versus an 18.6x average for healthcare stocks. The article cites clinical setbacks, including CagriSema missing a 25% mean weight-loss target and losing a head-to-head trial to Zepbound, plus a failed Phase 3 study of ziltivekimab. Second-quarter net sales rose 2% to 78.5 billion Danish kroner, and adjusted earnings per share rose 5% to 6.18 DKK. Oral Wegovy has helped widen the market, and the pipeline includes zenagamtide, which showed up to 24.3% mean weight loss over 36 weeks in an early study. The author concludes Novo is not a once-in-a-decade buy, though it could deliver solid returns over the medium term.