
NYSE:LLY
This summary was created by AI, based on 29 opinions in the last 12 months.
Eli Lilly & Co. (LLY) is positioning itself strongly in the healthcare market, particularly in the GLP-1 drug sector, leading to significant earnings growth expectations of around 25% annually in the coming years. Analysts emphasize LLY's competitive edge over Novo Nordisk (NVO), noting that their innovations have resulted in increased market share, particularly with the anticipated approval of an oral weight-loss pill. Many highlights include a solid pipeline of drugs and an expanding presence in treatment areas such as obesity and diabetes, while recent momentum has seen the stock breaking into new highs. However, there's caution over potential valuations due to the stock’s strong performance and the RSI nearing overbought territory. Overall, LLY is seen as a reliable long-term growth story amid a transformation from a traditional steady income earner to a fast-growing pharmaceutical company.
Has always traded at a lower valuation than some of the other pharmaceuticals. Has a fair number of patent expiry overhangs that it faces. There are only a few drugs that have been really able to keep their momentum going. On valuation, it always looks attractive, but with the problem of getting new drugs to market, there are other names that he would prefer such as Pfizer (PFE-N) or Johnson & Johnson (JNJ-N).
Cheap on this year’s earnings, but not so cheap on next year’s. Part of the problem with this company is that one of their major drugs Cymbalta goes off patent at the end of 2013. In the 3rd quarter this drug was over 20% of their revenues, so they are looking at a pretty significant drop in revenues in 2014 and a more significant drop in earnings. A more interesting one would be Pfizer (PFE-N) as there are catalysts for change as they are looking at breaking this company up into 3 different divisions starting in 3 years but will start reporting on those divisions individually next year. He holds no pharmaceuticals at this time.