Eli Lilly Dominance: The Impact of a Single Stock on Pharma ETF Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 15 2025
0mins
Should l Buy LLY?
Source: Benzinga
Eli Lilly's Influence on Healthcare ETFs: Eli Lilly has become a significant driver in the pharmaceutical ETF market, with around 15 ETFs allocating double-digit weights to the company, making it a key player in healthcare fund performance.
Strong Q3 Performance: In Q3, Eli Lilly reported a 54% year-over-year revenue increase, surpassing Wall Street expectations, and raised its full-year sales and EPS guidance, solidifying its status as a growth engine in the sector.
Major ETF Allocations: Leading ETFs like iShares US Pharmaceuticals ETF and VanEck Pharmaceutical ETF have substantial allocations to Lilly, with weights of 26.9% and 24.1% respectively, indicating a strong reliance on the stock for performance.
Concerns Over Concentration: While Eli Lilly's growth is beneficial for investors, there are concerns about the potential over-dependence of ETFs on a single stock, as Lilly's performance continues to significantly impact the broader pharmaceutical ETF market.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1008.390
Low
950.00
Averages
1192
High
1500
Current: 1008.390
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lilly's Remarks on the CMMI Balance Model for GLP-1 Medications
Statement Overview: Lilly's statement addresses the balance model for GLP-1 medicines, emphasizing its importance in the context of healthcare and patient outcomes.
Focus on GLP-1 Medicines: The statement highlights the role of GLP-1 medicines in managing conditions such as diabetes and obesity, underlining their therapeutic benefits.
Commitment to Innovation: Lilly reaffirms its commitment to innovation in the pharmaceutical industry, aiming to enhance treatment options and improve patient care.
Call for Collaboration: The statement encourages collaboration among stakeholders to optimize the use of GLP-1 medicines and ensure equitable access for patients.
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Eli Lilly's Medicare Drug Costs May Exceed $50 Cap
- Cost Cap Concerns: Eli Lilly has indicated that some Medicare enrollees may face out-of-pocket costs exceeding the $50 cap for its weight loss and obesity drugs, potentially impacting patient access and the company's competitive position in the market.
- New Payment Model: The BALANCE model introduced by the Centers for Medicare & Medicaid Services (CMS) aims to lower costs for GLP-1 drugs, set to take effect in 2027, which may influence Eli Lilly's sales strategies and market share.
- Patient Education Initiatives: Lilly stated it will actively educate patients and their physicians about plan options and smoothing programs to help patients access medications at the lowest possible out-of-pocket costs, reflecting the company's commitment to patient support and potentially affecting its brand image.
- Increased Market Competition: As CMS negotiates directly with GLP-1 drug manufacturers, Lilly may face pressure from competitors like Novo Nordisk, impacting its leadership position in the obesity drug market.
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- Stake Sale Overview: On February 17, 2026, BLKBRD Asset Management disclosed it sold all 318,666 shares of Hims & Hers Health, with an estimated transaction value of $18.07 million, reflecting a complete exit from its position during the fourth quarter.
- Impact on Asset Management: This sale reduced Hims & Hers' stake from 5% to 0%, indicating a significant loss of confidence from BLKBRD, which could negatively influence market perceptions of Hims & Hers.
- Stock Performance: As of February 16, 2026, Hims & Hers shares were priced at $16.30, down 72.46% over the past year, underperforming the S&P 500 by 84.25 percentage points, highlighting severe competitive challenges.
- Future Outlook: Although Hims & Hers recently announced a new partnership with Novo Nordisk that may provide a short-term stock rebound, ongoing market pressures and competitive challenges suggest that investors should carefully assess the company's long-term prospects.
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Lutnick Holds Meeting with Eli Lilly CEO to Talk About Most Favored Nation Agreements - U.S. Commerce Department
- Meeting Overview: Lutinick met with the CEO of Lilly to discuss the most favored nation deals in the context of U.S. commerce.
- Focus on Commerce: The discussion centered around strategies and implications of these deals for the U.S. Commerce Department.
See More
BLKBRD Asset Management Fully Exits Hims & Hers Stake
- Complete Exit: On February 17, 2026, BLKBRD Asset Management disclosed it fully exited its position in Hims & Hers Health by selling 318,666 shares, with an estimated trade value of $18.07 million, resulting in a 24.3% drop in the fund's quarterly average assets under management (AUM).
- Value Decline: The liquidation left Hims & Hers Health with a net position value of zero, previously accounting for 5.0% of the fund's AUM, indicating a complete loss of confidence in the stock by the fund.
- Market Reaction: Hims & Hers' stock has been in freefall since last June, plummeting from a historical high of $64 to around $15, primarily due to Novo Nordisk terminating its partnership and suing the company, which negatively impacted market expectations for its future.
- New Partnership Opportunity: Despite these challenges, Hims & Hers announced a new partnership with Novo Nordisk on March 10, 2026, to offer its weight-loss drugs Ozempic and Wegovy, leading to a 6% stock price increase and providing investors with a chance to reassess the company's prospects.
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Mullin and Wood Overlap on Seven Stocks in Portfolios
- Portfolio Overlap: According to Benzinga, Senator Mullin and ARK Invest founder Cathie Wood have overlapping investments in seven stocks over the past three years, indicating a potential influence on market attention towards these stocks.
- Shared Stock List: The seven stocks reflect a preference for high-growth companies, showcasing Wood's focus on disruptive technologies and Mullin's strategy of investing in small-cap stocks, which may enhance market confidence in these sectors.
- Divergent Investment Styles: ARK Funds emphasizes long-term performance in innovative companies, particularly in fintech, cryptocurrency, and electric vehicles, while Mullin favors small-cap stocks and the
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Lilly's Remarks on the CMMI Balance Model for GLP-1 Medications
Statement Overview: Lilly's statement addresses the balance model for GLP-1 medicines, emphasizing its importance in the context of healthcare and patient outcomes.
Focus on GLP-1 Medicines: The statement highlights the role of GLP-1 medicines in managing conditions such as diabetes and obesity, underlining their therapeutic benefits.
Commitment to Innovation: Lilly reaffirms its commitment to innovation in the pharmaceutical industry, aiming to enhance treatment options and improve patient care.
Call for Collaboration: The statement encourages collaboration among stakeholders to optimize the use of GLP-1 medicines and ensure equitable access for patients.
See More
Eli Lilly's Medicare Drug Costs May Exceed $50 Cap
- Cost Cap Concerns: Eli Lilly has indicated that some Medicare enrollees may face out-of-pocket costs exceeding the $50 cap for its weight loss and obesity drugs, potentially impacting patient access and the company's competitive position in the market.
- New Payment Model: The BALANCE model introduced by the Centers for Medicare & Medicaid Services (CMS) aims to lower costs for GLP-1 drugs, set to take effect in 2027, which may influence Eli Lilly's sales strategies and market share.
- Patient Education Initiatives: Lilly stated it will actively educate patients and their physicians about plan options and smoothing programs to help patients access medications at the lowest possible out-of-pocket costs, reflecting the company's commitment to patient support and potentially affecting its brand image.
- Increased Market Competition: As CMS negotiates directly with GLP-1 drug manufacturers, Lilly may face pressure from competitors like Novo Nordisk, impacting its leadership position in the obesity drug market.
See More
BLKBRD Asset Management Fully Exits Hims & Hers Stake
- Stake Sale Overview: On February 17, 2026, BLKBRD Asset Management disclosed it sold all 318,666 shares of Hims & Hers Health, with an estimated transaction value of $18.07 million, reflecting a complete exit from its position during the fourth quarter.
- Impact on Asset Management: This sale reduced Hims & Hers' stake from 5% to 0%, indicating a significant loss of confidence from BLKBRD, which could negatively influence market perceptions of Hims & Hers.
- Stock Performance: As of February 16, 2026, Hims & Hers shares were priced at $16.30, down 72.46% over the past year, underperforming the S&P 500 by 84.25 percentage points, highlighting severe competitive challenges.
- Future Outlook: Although Hims & Hers recently announced a new partnership with Novo Nordisk that may provide a short-term stock rebound, ongoing market pressures and competitive challenges suggest that investors should carefully assess the company's long-term prospects.
See More
Lutnick Holds Meeting with Eli Lilly CEO to Talk About Most Favored Nation Agreements - U.S. Commerce Department
- Meeting Overview: Lutinick met with the CEO of Lilly to discuss the most favored nation deals in the context of U.S. commerce.
- Focus on Commerce: The discussion centered around strategies and implications of these deals for the U.S. Commerce Department.
See More
BLKBRD Asset Management Fully Exits Hims & Hers Stake
- Complete Exit: On February 17, 2026, BLKBRD Asset Management disclosed it fully exited its position in Hims & Hers Health by selling 318,666 shares, with an estimated trade value of $18.07 million, resulting in a 24.3% drop in the fund's quarterly average assets under management (AUM).
- Value Decline: The liquidation left Hims & Hers Health with a net position value of zero, previously accounting for 5.0% of the fund's AUM, indicating a complete loss of confidence in the stock by the fund.
- Market Reaction: Hims & Hers' stock has been in freefall since last June, plummeting from a historical high of $64 to around $15, primarily due to Novo Nordisk terminating its partnership and suing the company, which negatively impacted market expectations for its future.
- New Partnership Opportunity: Despite these challenges, Hims & Hers announced a new partnership with Novo Nordisk on March 10, 2026, to offer its weight-loss drugs Ozempic and Wegovy, leading to a 6% stock price increase and providing investors with a chance to reassess the company's prospects.
See More
Mullin and Wood Overlap on Seven Stocks in Portfolios
- Portfolio Overlap: According to Benzinga, Senator Mullin and ARK Invest founder Cathie Wood have overlapping investments in seven stocks over the past three years, indicating a potential influence on market attention towards these stocks.
- Shared Stock List: The seven stocks reflect a preference for high-growth companies, showcasing Wood's focus on disruptive technologies and Mullin's strategy of investing in small-cap stocks, which may enhance market confidence in these sectors.
- Divergent Investment Styles: ARK Funds emphasizes long-term performance in innovative companies, particularly in fintech, cryptocurrency, and electric vehicles, while Mullin favors small-cap stocks and the
See More
