Hedge Funds Acquire Eli Lilly, United Healthcare, and Others, Renewing Focus on Healthcare ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 17 2025
0mins
Source: Benzinga
Hedge Fund Strategy Shift: Hedge funds are pivoting towards healthcare investments, moving away from tech stocks due to high valuations and market volatility, with a focus on large-cap pharma and managed-care companies.
Key Players in Healthcare: Notable companies attracting institutional investment include Eli Lilly, UnitedHealth Group, Johnson & Johnson, and Elevance Health, driven by their strong earnings potential and stable revenue streams.
Healthcare ETFs to Watch: Recommended ETFs for investors include the Health Care Select Sector SPDR Fund (XLV), VanEck Pharmaceutical ETF (PPH), and Vanguard Health Care ETF (VHT), which align with hedge fund positioning and offer varying levels of exposure to the healthcare sector.
Market Outlook: As hedge funds recalibrate their portfolios, healthcare ETFs are expected to benefit from their defensive characteristics, earnings visibility, and growth potential in drug pipelines, making them attractive for Q4 investments.
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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: 905.030
Low
950.00
Averages
1192
High
1500
Current: 905.030
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.
Positive Phase 3 Results for Foundayo in Diabetes Treatment
- Cardiovascular Event Risk Reduction: In a study involving over 2,700 adults with type 2 diabetes, patients taking Foundayo experienced a 16% lower risk of major adverse cardiovascular events compared to those on insulin glargine, indicating Foundayo's significant advantage in cardiovascular safety, which may attract more patients to choose this medication.
- Significant Mortality Risk Reduction: A pre-planned analysis revealed that patients on Foundayo had a 57% lower risk of death from any cause compared to those on insulin glargine, further enhancing Foundayo's appeal as a diabetes treatment and potentially increasing its market acceptance.
- FDA Submission Plans: Based on the trial results, Eli Lilly plans to submit an application for Foundayo's approval to the FDA by the end of Q2, which, if approved, could open new market opportunities for the company in diabetes treatment and strengthen its product portfolio.
- Market Competition Dynamics: Despite the positive clinical results for Foundayo, retail investor sentiment towards Eli Lilly remains bearish, likely due to intense competition in the weight-loss drug market, particularly from Novo Nordisk, which may affect investor confidence in the company's future performance.
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Eli Lilly Acquires Centessa Pharmaceuticals for Over $6 Billion
- Acquisition Amount and Market Reaction: Eli Lilly announced the acquisition of Centessa Pharmaceuticals at $38 per share, totaling over $6.3 billion, with a positive market response reflected in a 0.85% stock price increase, indicating investor confidence in the deal.
- Funding Sources and Financial Health: Although specific funding methods were not disclosed, Lilly's $7.2 billion cash reserves and over $42 billion in long-term debt, combined with annual revenues exceeding $65 billion, demonstrate its financial capacity to support the acquisition.
- Drug Development Potential: Centessa's lead drug candidate, cleminorexton, shows promising results in treating sleep disorders and is currently in phase 2a clinical trials, which could provide significant competitive advantages for Lilly if successful.
- Strategic Significance and Future Outlook: This acquisition is part of Lilly's ongoing growth strategy and may drive innovation in the neuroscience field, further solidifying its leadership position in the global pharmaceutical market.
See More
U.S. Stocks Edge Up as PepsiCo and TSMC Shine
- PepsiCo's Quarter Performance: PepsiCo achieved its first volume growth in North American food business in two years, with CEO Ramon Laguarta addressing the industry's threat from GLP-1 weight-loss drugs, leading to a 1% rise in shares, demonstrating the company's resilience and adaptability in a competitive consumer goods market.
- TSMC Profit Surge: TSMC reported a 58% year-over-year profit increase, despite facing challenges with shortages of industrial gases; management noted a 'little bit softer' memory pricing, indicating ongoing demand and competitive pressures in advanced chip manufacturing that could impact future profitability.
- J.B. Hunt Transport Services: J.B. Hunt indicated the start of a new cycle with positive demand signals, reporting a first-quarter earnings beat and a 1% premarket share increase, reflecting potential growth opportunities in the transportation sector.
- Analyst Rating Changes: JPMorgan downgraded Corning to hold and cut its price target from $175 to $115, citing the need for greater earnings visibility to support stock upside, indicating a cautious market outlook on the company's future performance.
See More
Eli Lilly Seeks Label Expansion for Foundayo After Successful Phase 3 Trial
- Clinical Trial Success: Eli Lilly announced that its weight loss pill Foundayo successfully met the primary endpoint in the ACHIEVE-4 Phase 3 trial for type 2 diabetes patients, demonstrating non-inferiority to long-acting insulin glargine, indicating competitive cardiovascular event risk profiles.
- Cardiovascular Event Risk Reduction: In the study, Foundayo showed a 16% lower risk of major adverse cardiovascular events and a 57% reduction in all-cause mortality compared to glargine, providing strong clinical justification for its market promotion.
- Patient Dropout Concerns: Despite safety and tolerability data aligning with previous studies, nearly 11% of patients dropped out during the 52-week treatment period due to adverse events, which may negatively impact the drug's market acceptance.
- FDA Label Expansion Plans: Lilly intends to seek a label expansion for Foundayo by the end of Q2 under the FDA's National Priority Review Voucher program, reflecting the company's confidence and strategic positioning in the diabetes treatment market.
See More
Foundayo Achieves Positive Results in Phase 3 Trial
- Primary Objective Met: In the ACHIEVE-4 trial, Foundayo demonstrated a 16% lower risk of MACE-4 events and a 23% lower risk of MACE-3 events compared to insulin glargine, indicating its potential cardiovascular safety and comprehensive health benefits for diabetes patients.
- Significant Reduction in Mortality Risk: A pre-planned analysis revealed that Foundayo had a 57% lower risk of all-cause death compared to insulin glargine, providing strong support for its application as a diabetes treatment, with plans to submit to the FDA by the end of Q2.
- Sustained Clinical Efficacy: Over 52 weeks, Foundayo showed significantly greater improvements in A1C and body weight compared to insulin glargine, with an A1C reduction of 1.6% and a weight loss of 8.8%, demonstrating its effectiveness and safety in long-term treatment.
- Extensive Participant Base: The ACHIEVE-4 trial is the largest study of Foundayo in diabetes to date, enrolling over 2,700 participants across 15 countries, enhancing the reliability and applicability of its clinical data.
See More
Eli Lilly Leads U.S. Weight Loss Drug Market
- Market Leadership: Eli Lilly has captured a 60% market share in the U.S. weight loss drug sector, while rival Novo Nordisk's share has fallen to 39%, indicating a significant competitive edge for Lilly in this lucrative market.
- Significant Revenue Growth: The combined sales of Lilly's Zepbound and Mounjaro exceeded $11 billion in the latest quarter, driving a 43% year-over-year increase in overall revenue to over $19 billion, reflecting strong market demand for its weight loss portfolio.
- New Drug Advantage: Lilly's newly approved oral weight loss drug, Foundayo, can be taken with food, unlike Novo Nordisk's product which requires fasting, potentially attracting more consumers and further solidifying Lilly's market position.
- Future Potential: Lilly anticipates completing seven phase 3 trials for retatrutide by 2026, which targets three hormonal pathways and has shown promising results with over 28% weight loss in 68 weeks, suggesting it could offer a stronger competitive advantage in the weight loss market.
See More
Positive Phase 3 Results for Foundayo in Diabetes Treatment
- Cardiovascular Event Risk Reduction: In a study involving over 2,700 adults with type 2 diabetes, patients taking Foundayo experienced a 16% lower risk of major adverse cardiovascular events compared to those on insulin glargine, indicating Foundayo's significant advantage in cardiovascular safety, which may attract more patients to choose this medication.
- Significant Mortality Risk Reduction: A pre-planned analysis revealed that patients on Foundayo had a 57% lower risk of death from any cause compared to those on insulin glargine, further enhancing Foundayo's appeal as a diabetes treatment and potentially increasing its market acceptance.
- FDA Submission Plans: Based on the trial results, Eli Lilly plans to submit an application for Foundayo's approval to the FDA by the end of Q2, which, if approved, could open new market opportunities for the company in diabetes treatment and strengthen its product portfolio.
- Market Competition Dynamics: Despite the positive clinical results for Foundayo, retail investor sentiment towards Eli Lilly remains bearish, likely due to intense competition in the weight-loss drug market, particularly from Novo Nordisk, which may affect investor confidence in the company's future performance.
See More
Eli Lilly Acquires Centessa Pharmaceuticals for Over $6 Billion
- Acquisition Amount and Market Reaction: Eli Lilly announced the acquisition of Centessa Pharmaceuticals at $38 per share, totaling over $6.3 billion, with a positive market response reflected in a 0.85% stock price increase, indicating investor confidence in the deal.
- Funding Sources and Financial Health: Although specific funding methods were not disclosed, Lilly's $7.2 billion cash reserves and over $42 billion in long-term debt, combined with annual revenues exceeding $65 billion, demonstrate its financial capacity to support the acquisition.
- Drug Development Potential: Centessa's lead drug candidate, cleminorexton, shows promising results in treating sleep disorders and is currently in phase 2a clinical trials, which could provide significant competitive advantages for Lilly if successful.
- Strategic Significance and Future Outlook: This acquisition is part of Lilly's ongoing growth strategy and may drive innovation in the neuroscience field, further solidifying its leadership position in the global pharmaceutical market.
See More
U.S. Stocks Edge Up as PepsiCo and TSMC Shine
- PepsiCo's Quarter Performance: PepsiCo achieved its first volume growth in North American food business in two years, with CEO Ramon Laguarta addressing the industry's threat from GLP-1 weight-loss drugs, leading to a 1% rise in shares, demonstrating the company's resilience and adaptability in a competitive consumer goods market.
- TSMC Profit Surge: TSMC reported a 58% year-over-year profit increase, despite facing challenges with shortages of industrial gases; management noted a 'little bit softer' memory pricing, indicating ongoing demand and competitive pressures in advanced chip manufacturing that could impact future profitability.
- J.B. Hunt Transport Services: J.B. Hunt indicated the start of a new cycle with positive demand signals, reporting a first-quarter earnings beat and a 1% premarket share increase, reflecting potential growth opportunities in the transportation sector.
- Analyst Rating Changes: JPMorgan downgraded Corning to hold and cut its price target from $175 to $115, citing the need for greater earnings visibility to support stock upside, indicating a cautious market outlook on the company's future performance.
See More
Eli Lilly Seeks Label Expansion for Foundayo After Successful Phase 3 Trial
- Clinical Trial Success: Eli Lilly announced that its weight loss pill Foundayo successfully met the primary endpoint in the ACHIEVE-4 Phase 3 trial for type 2 diabetes patients, demonstrating non-inferiority to long-acting insulin glargine, indicating competitive cardiovascular event risk profiles.
- Cardiovascular Event Risk Reduction: In the study, Foundayo showed a 16% lower risk of major adverse cardiovascular events and a 57% reduction in all-cause mortality compared to glargine, providing strong clinical justification for its market promotion.
- Patient Dropout Concerns: Despite safety and tolerability data aligning with previous studies, nearly 11% of patients dropped out during the 52-week treatment period due to adverse events, which may negatively impact the drug's market acceptance.
- FDA Label Expansion Plans: Lilly intends to seek a label expansion for Foundayo by the end of Q2 under the FDA's National Priority Review Voucher program, reflecting the company's confidence and strategic positioning in the diabetes treatment market.
See More
Foundayo Achieves Positive Results in Phase 3 Trial
- Primary Objective Met: In the ACHIEVE-4 trial, Foundayo demonstrated a 16% lower risk of MACE-4 events and a 23% lower risk of MACE-3 events compared to insulin glargine, indicating its potential cardiovascular safety and comprehensive health benefits for diabetes patients.
- Significant Reduction in Mortality Risk: A pre-planned analysis revealed that Foundayo had a 57% lower risk of all-cause death compared to insulin glargine, providing strong support for its application as a diabetes treatment, with plans to submit to the FDA by the end of Q2.
- Sustained Clinical Efficacy: Over 52 weeks, Foundayo showed significantly greater improvements in A1C and body weight compared to insulin glargine, with an A1C reduction of 1.6% and a weight loss of 8.8%, demonstrating its effectiveness and safety in long-term treatment.
- Extensive Participant Base: The ACHIEVE-4 trial is the largest study of Foundayo in diabetes to date, enrolling over 2,700 participants across 15 countries, enhancing the reliability and applicability of its clinical data.
See More
Eli Lilly Leads U.S. Weight Loss Drug Market
- Market Leadership: Eli Lilly has captured a 60% market share in the U.S. weight loss drug sector, while rival Novo Nordisk's share has fallen to 39%, indicating a significant competitive edge for Lilly in this lucrative market.
- Significant Revenue Growth: The combined sales of Lilly's Zepbound and Mounjaro exceeded $11 billion in the latest quarter, driving a 43% year-over-year increase in overall revenue to over $19 billion, reflecting strong market demand for its weight loss portfolio.
- New Drug Advantage: Lilly's newly approved oral weight loss drug, Foundayo, can be taken with food, unlike Novo Nordisk's product which requires fasting, potentially attracting more consumers and further solidifying Lilly's market position.
- Future Potential: Lilly anticipates completing seven phase 3 trials for retatrutide by 2026, which targets three hormonal pathways and has shown promising results with over 28% weight loss in 68 weeks, suggesting it could offer a stronger competitive advantage in the weight loss market.
See More
