ETFs to Buy as Eli Lilly Beats Q1 Earnings, Lifts Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2024
0mins
Source: NASDAQ.COM
- Eli Lilly and Company Earnings: Eli Lilly posted mixed first-quarter 2024 earnings, beating earnings estimates but lagging on revenues. The stock jumped 6% in response to the earnings beat.
- Revenue and Sales Growth: Revenues rose 26% to $8.77 billion, driven by strong sales of drugs like Mounjaro, Zepbound, Verzenio, and Jardiance. Mounjaro's sales saw a significant increase.
- 2024 Outlook: Eli Lilly raised its revenue guidance for 2024 due to tremendous sales growth for Mounjaro and Zepbound. Adjusted earnings per share were also increased.
- ETFs Exposure to Eli Lilly: Investors can consider ETFs with exposure to Eli Lilly, such as iShares U.S. Pharmaceuticals ETF, Horizon Kinetics Medical ETF, iShares U.S. Healthcare ETF, Health Care Select Sector SPDR Fund, and VanEck Vectors Pharmaceutical ETF.
- Details of Specific ETFs: Each ETF offers different exposure to Eli Lilly, with varying assets under management, fees, and risk outlooks.
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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: 1102.080
Low
950.00
Averages
1192
High
1500
Current: 1102.080
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products 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, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
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.
FDA Grants Access to Eli Lilly's Next-Gen Obesity Drug for 79-Year-Old Patient
- FDA Collaboration: The FDA has partnered with Eli Lilly (LLY) to allow a 79-year-old man to access the experimental obesity drug retatrutide through the compassionate use program, highlighting the agency's support for innovative therapies.
- Significant Drug Efficacy: Retatrutide targets GIP, GLP-1, and glucagon receptors, with late-stage trial data indicating up to 28% weight loss over 80 weeks in adults with obesity or overweight, showcasing its potential as a powerful weight-loss solution.
- Unique Patient Background: The patient, aged 79 at the time of the request in April, was reportedly well-connected, suggesting that his application for FDA approval was influenced by high-level health officials, which may impact the drug's future accessibility.
- Transparent Company Policy: Eli Lilly stated that it provides investigational medicines in rare cases when individuals cannot join clinical trials and have exhausted treatment options, demonstrating the company's commitment to addressing patient needs and regulatory compliance.
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- Asset Sale Agreements: Sangamo Therapeutics has entered into agreements with Eli Lilly to sell its capsid delivery platform, zinc finger platform, modular integrase platform, and the ST-506 program, which is expected to generate cash flow to support its reorganization efforts.
- Transaction with Astellas: Concurrently, Sangamo has also reached an agreement with Astellas Pharma to sell the Fabry disease program, isaralgagene civaparvovec (ST-920), further optimizing its asset structure and focusing on core business areas.
- Bankruptcy Reorganization Initiation: Sangamo has voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, aiming to facilitate a court-supervised reorganization that includes the auction of nearly all its assets to address financial distress and rebuild the company.
- Stalking Horse Bidders: Eli Lilly and Astellas will serve as stalking horse bidders for the asset sale, indicating their strategic interest in Sangamo's technologies and assets, potentially laying the groundwork for future collaborations.
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- Emerging Company Opportunities: Laffont suggests that the future trillion-dollar company could be either an established giant or a newcomer, emphasizing that the ongoing reshuffle in the market may create new investment opportunities, particularly in AI and technology sectors.
- GPU Market Competition: Despite fierce competition in the GPU market, Laffont notes that Nvidia's forward P/E ratio of 19.66 indicates it is relatively cheap, which may attract investor interest and reflects confidence in its future growth prospects.
- AI Infrastructure Investment: Analyst Paul Meeks highlights that AI infrastructure spending is expected to continue until 2028, stressing the importance of investing in upstream hardware supply chains, which could provide long-term returns for investors.
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- Market Launch Plans: Eli Lilly expects to launch its weight-loss pill in Europe and Britain in the second half of 2026 or early 2027, targeting the out-of-pocket telehealth market similar to the U.S., indicating the company's commitment to international expansion.
- Public Reimbursement Strategy: Despite complexities introduced by new U.S. drug pricing policies, Lilly plans to pursue public reimbursement from European governments where feasible, aiming to diversify revenue sources and enhance market competitiveness.
- Partnership Approach: Lilly will partner with telehealth companies since most obesity treatments outside the U.S. are paid directly by patients, a strategy designed to expand its consumer-focused obesity business through direct-to-patient channels.
- Pricing Policy Impact: Lilly executives noted that while facing uncertainties, they will seek reimbursement prices consistent with the
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GLP-1 Drug Market Poised for Significant Growth
- Market Potential: Analysts at Grand View Research estimate that the global GLP-1 drug market will exceed $185 billion by 2033, with a compound annual growth rate of 12.4%, indicating significant growth potential that could transform the healthcare landscape.
- Eli Lilly's Strong Performance: Eli Lilly's GLP-1 drugs, Mounjaro and Zepbound, generated $19.8 billion in revenue during Q1 2026, reflecting an impressive growth rate of 56%, showcasing the company's robust competitive position in the rapidly expanding GLP-1 market.
- Viking Therapeutics' Potential: Although Viking Therapeutics has no approved drugs yet, its GLP-1 drug VK2735 has shown promising results in clinical trials, and if approved, could significantly boost its market value and become an attractive acquisition target for larger healthcare firms.
- Investment Risks and Opportunities: While Eli Lilly's high valuation at a 39x P/E ratio may seem steep, its strong fundamentals make it a compelling long-term investment, whereas Viking Therapeutics presents a higher risk-reward profile, appealing to investors looking for diversification.
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- Tech Stock Sell-Off: Global tech stocks are experiencing a sell-off, with European equities following suit and chip stocks leading the declines, indicating investor concerns that could impact market confidence and capital flows.
- Eli Lilly's Strong Performance: Eli Lilly's shares have surged over 400% in the last five years, primarily driven by the success of its weight-loss drug Mounjaro, although growth has stalled this year at just over 2%, yet its prospects in biotech remain promising.
- Market Diversification Trend: Fund manager Tom Hulick suggests investors should consider rotating out of AI stocks and focus on value stocks in biotech and GLP drugs, anticipating a pickup in small-cap stocks, reflecting a demand for diversified investments.
- GE Vernova and Panasonic Outlook: Hulick highlights GE Vernova's strong earnings momentum in the power sector, while Panasonic's backup battery systems and supercapacitors are noted for their potential to manage energy more efficiently, underscoring the importance of renewable energy technologies.
See More
FDA Grants Access to Eli Lilly's Next-Gen Obesity Drug for 79-Year-Old Patient
- FDA Collaboration: The FDA has partnered with Eli Lilly (LLY) to allow a 79-year-old man to access the experimental obesity drug retatrutide through the compassionate use program, highlighting the agency's support for innovative therapies.
- Significant Drug Efficacy: Retatrutide targets GIP, GLP-1, and glucagon receptors, with late-stage trial data indicating up to 28% weight loss over 80 weeks in adults with obesity or overweight, showcasing its potential as a powerful weight-loss solution.
- Unique Patient Background: The patient, aged 79 at the time of the request in April, was reportedly well-connected, suggesting that his application for FDA approval was influenced by high-level health officials, which may impact the drug's future accessibility.
- Transparent Company Policy: Eli Lilly stated that it provides investigational medicines in rare cases when individuals cannot join clinical trials and have exhausted treatment options, demonstrating the company's commitment to addressing patient needs and regulatory compliance.
See More
Sangamo Therapeutics Enters Asset Sales and Bankruptcy Proceedings
- Asset Sale Agreements: Sangamo Therapeutics has entered into agreements with Eli Lilly to sell its capsid delivery platform, zinc finger platform, modular integrase platform, and the ST-506 program, which is expected to generate cash flow to support its reorganization efforts.
- Transaction with Astellas: Concurrently, Sangamo has also reached an agreement with Astellas Pharma to sell the Fabry disease program, isaralgagene civaparvovec (ST-920), further optimizing its asset structure and focusing on core business areas.
- Bankruptcy Reorganization Initiation: Sangamo has voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, aiming to facilitate a court-supervised reorganization that includes the auction of nearly all its assets to address financial distress and rebuild the company.
- Stalking Horse Bidders: Eli Lilly and Astellas will serve as stalking horse bidders for the asset sale, indicating their strategic interest in Sangamo's technologies and assets, potentially laying the groundwork for future collaborations.
See More
A $10 Trillion Company on the Horizon
- Trillion-Dollar Company Prediction: Hedge fund manager Philippe Laffont forecasts that with global economic growth reaching $200 trillion in the next 15 years, a company capturing 5% of market cap could be valued at $10 trillion, highlighting significant market potential.
- Emerging Company Opportunities: Laffont suggests that the future trillion-dollar company could be either an established giant or a newcomer, emphasizing that the ongoing reshuffle in the market may create new investment opportunities, particularly in AI and technology sectors.
- GPU Market Competition: Despite fierce competition in the GPU market, Laffont notes that Nvidia's forward P/E ratio of 19.66 indicates it is relatively cheap, which may attract investor interest and reflects confidence in its future growth prospects.
- AI Infrastructure Investment: Analyst Paul Meeks highlights that AI infrastructure spending is expected to continue until 2028, stressing the importance of investing in upstream hardware supply chains, which could provide long-term returns for investors.
See More
Eli Lilly Plans Weight-Loss Pill Launch in Europe by 2026
- Market Launch Plans: Eli Lilly expects to launch its weight-loss pill in Europe and Britain in the second half of 2026 or early 2027, targeting the out-of-pocket telehealth market similar to the U.S., indicating the company's commitment to international expansion.
- Public Reimbursement Strategy: Despite complexities introduced by new U.S. drug pricing policies, Lilly plans to pursue public reimbursement from European governments where feasible, aiming to diversify revenue sources and enhance market competitiveness.
- Partnership Approach: Lilly will partner with telehealth companies since most obesity treatments outside the U.S. are paid directly by patients, a strategy designed to expand its consumer-focused obesity business through direct-to-patient channels.
- Pricing Policy Impact: Lilly executives noted that while facing uncertainties, they will seek reimbursement prices consistent with the
See More
GLP-1 Drug Market Poised for Significant Growth
- Market Potential: Analysts at Grand View Research estimate that the global GLP-1 drug market will exceed $185 billion by 2033, with a compound annual growth rate of 12.4%, indicating significant growth potential that could transform the healthcare landscape.
- Eli Lilly's Strong Performance: Eli Lilly's GLP-1 drugs, Mounjaro and Zepbound, generated $19.8 billion in revenue during Q1 2026, reflecting an impressive growth rate of 56%, showcasing the company's robust competitive position in the rapidly expanding GLP-1 market.
- Viking Therapeutics' Potential: Although Viking Therapeutics has no approved drugs yet, its GLP-1 drug VK2735 has shown promising results in clinical trials, and if approved, could significantly boost its market value and become an attractive acquisition target for larger healthcare firms.
- Investment Risks and Opportunities: While Eli Lilly's high valuation at a 39x P/E ratio may seem steep, its strong fundamentals make it a compelling long-term investment, whereas Viking Therapeutics presents a higher risk-reward profile, appealing to investors looking for diversification.
See More
Global Tech Stocks Sell Off; Eli Lilly Gains Favor
- Tech Stock Sell-Off: Global tech stocks are experiencing a sell-off, with European equities following suit and chip stocks leading the declines, indicating investor concerns that could impact market confidence and capital flows.
- Eli Lilly's Strong Performance: Eli Lilly's shares have surged over 400% in the last five years, primarily driven by the success of its weight-loss drug Mounjaro, although growth has stalled this year at just over 2%, yet its prospects in biotech remain promising.
- Market Diversification Trend: Fund manager Tom Hulick suggests investors should consider rotating out of AI stocks and focus on value stocks in biotech and GLP drugs, anticipating a pickup in small-cap stocks, reflecting a demand for diversified investments.
- GE Vernova and Panasonic Outlook: Hulick highlights GE Vernova's strong earnings momentum in the power sector, while Panasonic's backup battery systems and supercapacitors are noted for their potential to manage energy more efficiently, underscoring the importance of renewable energy technologies.
See More
