Eli Lilly Acquires Orna Therapeutics to Enhance Drug Pipeline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Market Volatility: Pfizer's stock surged from $33 to nearly $60 in 2020 due to rapid COVID-19 vaccine production, but after a significant drop in 2023, it now trades around $28, indicating the volatility in pharmaceutical demand.
- Patent Expiration Risks: Drug companies face challenges from patent expirations, with typical drug patents lasting 20 years; however, due to lengthy development times, effective market exclusivity often shrinks to just 10 to 12 years, necessitating continuous pipeline replenishment.
- Strategic Acquisition: Eli Lilly announced a $2.4 billion acquisition of Orna Therapeutics, which focuses on innovative drugs that manipulate genes and cells within patients, further solidifying its leadership in the lucrative GLP-1 drug category.
- Collaborative Development: Prior to the acquisition, Lilly entered a $350 million collaboration with a Chinese biotech firm to develop treatments for immune disorders and cancer, showcasing its strategic vision for global innovation in drug development.
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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: 1038.270
Low
950.00
Averages
1192
High
1500
Current: 1038.270
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.
Eli Lilly's Innovation and Growth Prospects
- Strong Clinical Execution: Eli Lilly achieved positive outcomes in nearly all R&D key events in 2025, showcasing exceptional performance in diabetes and weight loss medications, which is expected to further drive market share and revenue growth in the future.
- Cancer Drug Progress: The company's cancer medication, Jaypirca, excelled in a phase 3 trial and is on track for label expansions, which will provide new revenue streams and enhance its competitiveness in oncology treatment.
- AI Investment: Eli Lilly is investing in building the industry's largest AI supercomputer to accelerate drug development, which is expected to significantly improve clinical trial success rates and bolster the company's innovative standing and market leadership in the pharmaceutical sector.
- Robust Financial Performance: The company continues to report strong financial results, boasts a rich product pipeline, and rewards shareholders through increasing dividends and share buybacks, demonstrating its diversified growth potential beyond diabetes and weight loss markets.
See More
Eli Lilly Reports Positive Results for Retevmo in NSCLC Trial
- Trial Success: The LIBRETTO-432 trial demonstrated that Retevmo (selpercatinib) as adjuvant therapy significantly improved event-free survival (EFS) in early-stage RET fusion-positive non-small cell lung cancer (NSCLC) patients, indicating its potential value and likely enhancing market acceptance.
- Survival Trends Favorable: Although overall survival results were immature at the time of analysis, preliminary data showed a favorable trend for Retevmo, highlighting its importance in early treatment and potentially encouraging more patients to undergo genomic testing for optimized therapy.
- Patient Recruitment: The LIBRETTO-432 trial enrolled 151 patients randomized 1:1 to receive either Retevmo or placebo, ensuring the reliability and clinical applicability of the results, further validating the use of targeted therapies in lung cancer.
- Future Outlook: Eli Lilly plans to present detailed trial results at an upcoming medical congress and submit data to global health authorities, which is expected to accelerate the adoption of targeted therapies in early-stage NSCLC patients and promote the widespread use of genomic testing.
See More
ELI LILLY - SELPERCATINIB SHOWED PROMISING OVERALL SURVIVAL TRENDS, BUT RESULTS REMAINED IMMATURE DUE TO LIMITED EVENTS AT THE TIME OF ANALYSIS
Overall Survival Results: The analysis indicates a trend in favor of Selpercatinib, suggesting improved overall survival rates for patients.
Immaturity of Analysis: The findings are considered immature due to the limited number of events observed during the analysis period.
See More
ELI LILLY'S PHASE 3 LIBRETTO-432 TRIAL ACHIEVES PRIMARY GOAL WITH ENHANCED EVENT-FREE SURVIVAL
Study Overview: The study focuses on Phase 3 of the Eli Lilly trial, which aims to evaluate the effectiveness of a new treatment.
Primary Endpoint: The primary endpoint of the study is to demonstrate improved event-free survival rates among participants.
See More
LILLY'S RETEVMO (SELPERCATINIB) PROVIDES SIGNIFICANT EVENT-FREE SURVIVAL ADVANTAGE AS ADJUVANT TREATMENT FOR EARLY-STAGE RET FUSION-POSITIVE LUNG CANCER
Event-Free Survival Benefit: A recent study highlights the substantial event-free survival benefit of using LILLY's RETEVMO (selpercatinib) as an early-stage therapy for patients with positive lung cancer mutations.
Adjunct Therapy: RETEVMO is positioned as an adjunct therapy, enhancing treatment options for patients diagnosed with early-stage RET fusion-positive lung cancer.
See More
Stock Futures Decline; Four Stocks to Watch
- Shopify Performance Dip: Shopify's stock fell 0.3% in premarket trading as Wall Street resumed after the holiday, despite analysts defending the e-commerce company, which reported a strong Q4 with revenue up approximately 31% year-over-year to about $3.7 billion, driven by robust gross merchandise volume and ongoing adoption of payment solutions.
- Eli Lilly Trial Success: Eli Lilly's stock traded flat before the opening bell after announcing a Phase 3 trial win for its targeted cancer therapy Retevmo, demonstrating a statistically significant benefit in event-free survival for patients with a specific lung cancer type who had undergone prior therapies, enhancing its competitive position in oncology.
- General Mills Financial Warning: General Mills' stock dropped 3.3% in premarket trading following a financial update that revised FY26 organic sales expectations down to a decline of 1.5% to 2.0%, compared to the previous range of down 1% to up 1%, which could negatively impact its future profitability.
- Norwegian Cruise Line Surge: Norwegian Cruise Line's stock surged 6.6% in early trading after activist investor Elliott Investment Management disclosed a stake of over 10%, making it one of the largest shareholders, with plans to advocate for significant operational and strategic changes to address the company's underperformance.
See More
Eli Lilly's Innovation and Growth Prospects
- Strong Clinical Execution: Eli Lilly achieved positive outcomes in nearly all R&D key events in 2025, showcasing exceptional performance in diabetes and weight loss medications, which is expected to further drive market share and revenue growth in the future.
- Cancer Drug Progress: The company's cancer medication, Jaypirca, excelled in a phase 3 trial and is on track for label expansions, which will provide new revenue streams and enhance its competitiveness in oncology treatment.
- AI Investment: Eli Lilly is investing in building the industry's largest AI supercomputer to accelerate drug development, which is expected to significantly improve clinical trial success rates and bolster the company's innovative standing and market leadership in the pharmaceutical sector.
- Robust Financial Performance: The company continues to report strong financial results, boasts a rich product pipeline, and rewards shareholders through increasing dividends and share buybacks, demonstrating its diversified growth potential beyond diabetes and weight loss markets.
See More
Eli Lilly Reports Positive Results for Retevmo in NSCLC Trial
- Trial Success: The LIBRETTO-432 trial demonstrated that Retevmo (selpercatinib) as adjuvant therapy significantly improved event-free survival (EFS) in early-stage RET fusion-positive non-small cell lung cancer (NSCLC) patients, indicating its potential value and likely enhancing market acceptance.
- Survival Trends Favorable: Although overall survival results were immature at the time of analysis, preliminary data showed a favorable trend for Retevmo, highlighting its importance in early treatment and potentially encouraging more patients to undergo genomic testing for optimized therapy.
- Patient Recruitment: The LIBRETTO-432 trial enrolled 151 patients randomized 1:1 to receive either Retevmo or placebo, ensuring the reliability and clinical applicability of the results, further validating the use of targeted therapies in lung cancer.
- Future Outlook: Eli Lilly plans to present detailed trial results at an upcoming medical congress and submit data to global health authorities, which is expected to accelerate the adoption of targeted therapies in early-stage NSCLC patients and promote the widespread use of genomic testing.
See More
ELI LILLY - SELPERCATINIB SHOWED PROMISING OVERALL SURVIVAL TRENDS, BUT RESULTS REMAINED IMMATURE DUE TO LIMITED EVENTS AT THE TIME OF ANALYSIS
Overall Survival Results: The analysis indicates a trend in favor of Selpercatinib, suggesting improved overall survival rates for patients.
Immaturity of Analysis: The findings are considered immature due to the limited number of events observed during the analysis period.
See More
ELI LILLY'S PHASE 3 LIBRETTO-432 TRIAL ACHIEVES PRIMARY GOAL WITH ENHANCED EVENT-FREE SURVIVAL
Study Overview: The study focuses on Phase 3 of the Eli Lilly trial, which aims to evaluate the effectiveness of a new treatment.
Primary Endpoint: The primary endpoint of the study is to demonstrate improved event-free survival rates among participants.
See More
LILLY'S RETEVMO (SELPERCATINIB) PROVIDES SIGNIFICANT EVENT-FREE SURVIVAL ADVANTAGE AS ADJUVANT TREATMENT FOR EARLY-STAGE RET FUSION-POSITIVE LUNG CANCER
Event-Free Survival Benefit: A recent study highlights the substantial event-free survival benefit of using LILLY's RETEVMO (selpercatinib) as an early-stage therapy for patients with positive lung cancer mutations.
Adjunct Therapy: RETEVMO is positioned as an adjunct therapy, enhancing treatment options for patients diagnosed with early-stage RET fusion-positive lung cancer.
See More
Stock Futures Decline; Four Stocks to Watch
- Shopify Performance Dip: Shopify's stock fell 0.3% in premarket trading as Wall Street resumed after the holiday, despite analysts defending the e-commerce company, which reported a strong Q4 with revenue up approximately 31% year-over-year to about $3.7 billion, driven by robust gross merchandise volume and ongoing adoption of payment solutions.
- Eli Lilly Trial Success: Eli Lilly's stock traded flat before the opening bell after announcing a Phase 3 trial win for its targeted cancer therapy Retevmo, demonstrating a statistically significant benefit in event-free survival for patients with a specific lung cancer type who had undergone prior therapies, enhancing its competitive position in oncology.
- General Mills Financial Warning: General Mills' stock dropped 3.3% in premarket trading following a financial update that revised FY26 organic sales expectations down to a decline of 1.5% to 2.0%, compared to the previous range of down 1% to up 1%, which could negatively impact its future profitability.
- Norwegian Cruise Line Surge: Norwegian Cruise Line's stock surged 6.6% in early trading after activist investor Elliott Investment Management disclosed a stake of over 10%, making it one of the largest shareholders, with plans to advocate for significant operational and strategic changes to address the company's underperformance.
See More
