Markets · Economy 51
Over the past five years, Eli Lilly (LLY) stock managed a total return of 376%. If the stock repeats this performance over the next five years, share prices could reach over $5,500. Much of its current rise is driven by its GLP-1 weight-loss therapies. However, these factors are unlikely to recur. Still, reasons exist to believe Eli Lilly’s stock could double in value, making a $5,000 investment worth over $10,000 in five years. Here’s why.
The GLP-1 run isn’t over yet. Tirzepatide, marketed as Mounjaro for type 2 diabetes and Zepbound for chronic weight management, remains a leader in the GLP-1 space. Tirzepatide is an incretin-based peptide drug with broad potential. It has already been approved for obstructive sleep apnea and, on August 28, for reducing major cardiovascular risks in high-risk type 2 diabetes patients. Future indications may include heart failure with preserved ejection fraction (HFpEF) and metabolic dysfunction-associated steatotic liver disease (MASH/NASH).
Beyond metabolic health, Lilly’s pipeline extends into oncology, neuroscience, and immunology. In Q2, Mounjaro and Zepbound generated $23 billion in revenue, a 48% year-over-year increase. Lilly invested $3.8 billion in R&D, securing recent approvals like Ebglyss for atopic dermatitis, Kisunla for early-stage Alzheimer’s, and Omvoh for ulcerative colitis. These drugs, along with late-stage cancer therapies, will provide high-margin revenue streams in the future.
Source: The Motley Fool
