Eli Lilly Acquires Orna Therapeutics to Expand Drug Pipeline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Market Leadership: Eli Lilly's tirzepatide became the best-selling drug globally last year, driving a 400% increase in stock price over the past five years, although a 4% decline in 2026 indicates market caution regarding future growth.
- Strategic Acquisition: Lilly's $2.4 billion cash acquisition of Boston-based Orna Therapeutics aims to enhance its drug pipeline, with Orna developing innovative medicines targeting autoimmune diseases, potentially leading to the next blockbuster drug.
- Technological Innovation: Orna's ORN-252 therapy utilizes in vivo chimeric antigen receptor T-cell technology, allowing the patient's body to generate necessary changes to combat diseases, showing promising potential despite being in early-stage development, which could revolutionize treatment approaches.
- Pipeline Expansion: Prior to the Orna acquisition, Lilly announced a $350 million collaboration with a Chinese biotech firm to develop treatments for immune disorders and cancer, reflecting its proactive strategy in drug development, although new drug marketing may take several years.
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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 Increases Inventory for Weight Loss Pill Ahead of FDA Approval
- Inventory Buildup: As of December 31, 2025, Eli Lilly has built a pre-launch inventory of $1.5 billion for its experimental weight loss pill orforglipron, a significant increase from $548.1 million a year ago, reflecting strong expectations for FDA approval.
- Demand Fulfillment: Lilly's medical chief indicated that the company has sufficient supplies of orforglipron to meet anticipated demand post-FDA approval, which will help the company secure a foothold in the weight loss drug market.
- Regulatory Progress: Orforglipron is on track for potential U.S. regulatory approval in Q2 2026 as an oral treatment option for obese or overweight adults, further enhancing the company's competitive position in the market.
- Market Competition: While Lilly is actively positioning itself in the weight loss drug sector, rival Novo Nordisk has already launched its Wegovy pill at $149 per month, which may impact Lilly's market share.
See More
Eli Lilly Acquires Orna Therapeutics to Expand Drug Pipeline
- Market Leadership: Eli Lilly's tirzepatide became the best-selling drug globally last year, driving a 400% increase in stock price over the past five years, although a 4% decline in 2026 indicates market caution regarding future growth.
- Strategic Acquisition: Lilly's $2.4 billion cash acquisition of Boston-based Orna Therapeutics aims to enhance its drug pipeline, with Orna developing innovative medicines targeting autoimmune diseases, potentially leading to the next blockbuster drug.
- Technological Innovation: Orna's ORN-252 therapy utilizes in vivo chimeric antigen receptor T-cell technology, allowing the patient's body to generate necessary changes to combat diseases, showing promising potential despite being in early-stage development, which could revolutionize treatment approaches.
- Pipeline Expansion: Prior to the Orna acquisition, Lilly announced a $350 million collaboration with a Chinese biotech firm to develop treatments for immune disorders and cancer, reflecting its proactive strategy in drug development, although new drug marketing may take several years.
See More
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- GLP-1 Drug Competition: Pfizer has fallen behind in the GLP-1 weight loss drug market, with competitors Novo Nordisk and Eli Lilly quickly capturing market share, while Pfizer's internally developed drug was abandoned due to underperformance, necessitating an acquisition to re-enter the race.
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- Stable Dividend Policy: Despite a high dividend yield of 6.3% and a payout ratio exceeding 100%, Pfizer plans to maintain its current dividend level, demonstrating a commitment to shareholder returns and stability amidst financial pressures.
- Market Competition Pressure: Pfizer is trailing behind Novo Nordisk and Eli Lilly in the GLP-1 weight loss drug market, with the former introducing an injection and the latter working on an oral version, prompting Pfizer to acquire another company to re-enter the race, highlighting the intense competition in this sector.
- Future Development Potential: If Pfizer's GLP-1 drug can offer the convenience of monthly injections, it may attract more consumers; despite challenges from patent expirations and market competition, Pfizer has other drugs in development, indicating its potential for long-term survival and growth.
See More
Eli Lilly Increases Inventory for Weight Loss Pill Ahead of FDA Approval
- Inventory Buildup: As of December 31, 2025, Eli Lilly has built a pre-launch inventory of $1.5 billion for its experimental weight loss pill orforglipron, a significant increase from $548.1 million a year ago, reflecting strong expectations for FDA approval.
- Demand Fulfillment: Lilly's medical chief indicated that the company has sufficient supplies of orforglipron to meet anticipated demand post-FDA approval, which will help the company secure a foothold in the weight loss drug market.
- Regulatory Progress: Orforglipron is on track for potential U.S. regulatory approval in Q2 2026 as an oral treatment option for obese or overweight adults, further enhancing the company's competitive position in the market.
- Market Competition: While Lilly is actively positioning itself in the weight loss drug sector, rival Novo Nordisk has already launched its Wegovy pill at $149 per month, which may impact Lilly's market share.
See More
Eli Lilly Acquires Orna Therapeutics to Expand Drug Pipeline
- Market Leadership: Eli Lilly's tirzepatide became the best-selling drug globally last year, driving a 400% increase in stock price over the past five years, although a 4% decline in 2026 indicates market caution regarding future growth.
- Strategic Acquisition: Lilly's $2.4 billion cash acquisition of Boston-based Orna Therapeutics aims to enhance its drug pipeline, with Orna developing innovative medicines targeting autoimmune diseases, potentially leading to the next blockbuster drug.
- Technological Innovation: Orna's ORN-252 therapy utilizes in vivo chimeric antigen receptor T-cell technology, allowing the patient's body to generate necessary changes to combat diseases, showing promising potential despite being in early-stage development, which could revolutionize treatment approaches.
- Pipeline Expansion: Prior to the Orna acquisition, Lilly announced a $350 million collaboration with a Chinese biotech firm to develop treatments for immune disorders and cancer, reflecting its proactive strategy in drug development, although new drug marketing may take several years.
See More
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- Trillion-Dollar Milestone: Walmart (WMT) has become the first traditional retailer to surpass a $1 trillion market capitalization, marking a significant leadership position in the retail sector and likely attracting more investor interest in its future growth potential.
- Pharma Industry Breakthrough: Eli Lilly (LLY) was the first pharmaceutical company to reach a $1 trillion valuation last November, although its current market cap has decreased to $929.65 billion, indicating its significant influence in the pharma sector that may affect future investment decisions.
- Market Expectation Survey: In a recent Seeking Alpha sentiment survey, about 45% of respondents believe JPMorgan (JPM) will be the next company to reach a $1 trillion market cap, with its current valuation at $815.98 billion, reflecting market confidence in its future growth.
- Other Potential Contenders: Exxon Mobil (XOM), Visa (V), and Johnson & Johnson (JNJ) were also popular choices in the survey, highlighting investor interest in their growth potential, which could influence their stock price movements and market strategies.
See More
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- Moderna Beats Expectations: Moderna's Q4 2025 financial results exceeded expectations, leading to a 0.2% rise in premarket trading, and despite a significant regulatory setback with the FDA declining to review its flu vaccine candidate, the company reaffirmed its 2026 growth target, showcasing confidence in future prospects.
- Twilio's Mixed Outlook: Twilio's stock fell about 3% in premarket trading despite beating Q4 estimates, as analysts expressed mixed reactions to its 2026 guidance; RBC Capital maintained its Underperform rating and $100 price target, reflecting concerns over the company's future growth potential.
- Arista Networks' Strong Surge: Arista Networks jumped approximately 8.3% in premarket trading after reporting Q4 results and revenue outlook that surpassed estimates, with BofA maintaining a Buy rating and raising the price target from $175 to $185, indicating analysts' optimism about accelerating growth in 2026.
- Eli Lilly's Inventory Buildup: Eli Lilly's stock gained 0.6% before the opening bell after a regulatory filing revealed the company has increased inventory for its experimental weight loss pill, forglipron, as it awaits potential FDA approval in the coming months, highlighting its proactive approach in drug development.
See More
Pfizer's Dividend Yield Exceeds Market Average
- Dividend Yield Advantage: Pfizer boasts a dividend yield of 6.3%, and despite a payout ratio exceeding 100%, the company plans to maintain this dividend, reflecting its commitment to shareholder returns and potentially attracting more income-focused investors.
- Patent Cliff Risks: Pfizer faces significant patent expiration risks in 2027 and 2028 for blockbuster drugs like Ibrance, Eliquis, and Vyndaqel, which are expected to lose patent protection, leading to dramatic revenue declines and putting pressure on future growth prospects.
- GLP-1 Drug Competition: Pfizer has fallen behind in the GLP-1 weight loss drug market, with competitors Novo Nordisk and Eli Lilly quickly capturing market share, while Pfizer's internally developed drug was abandoned due to underperformance, necessitating an acquisition to re-enter the race.
- Clinical Trial Progress: Pfizer's GLP-1 candidate PF'3944 is advancing through clinical trials, with data expected to be presented at the American Diabetes Association's Scientific Sessions in June; if results are favorable, this could serve as a catalyst for share price gains and help the company regain competitive footing.
See More
Pfizer's Long-Acting GLP-1 Weight Loss Drug Shows Promising Trial Results
- Clinical Trial Progress: Pfizer's long-acting GLP-1 weight loss drug PF'3944 is undergoing clinical trials, with results expected to be reported at the American Diabetes Association's Scientific Sessions in June, and positive outcomes could serve as a catalyst for stock price increases.
- Stable Dividend Policy: Despite a high dividend yield of 6.3% and a payout ratio exceeding 100%, Pfizer plans to maintain its current dividend level, demonstrating a commitment to shareholder returns and stability amidst financial pressures.
- Market Competition Pressure: Pfizer is trailing behind Novo Nordisk and Eli Lilly in the GLP-1 weight loss drug market, with the former introducing an injection and the latter working on an oral version, prompting Pfizer to acquire another company to re-enter the race, highlighting the intense competition in this sector.
- Future Development Potential: If Pfizer's GLP-1 drug can offer the convenience of monthly injections, it may attract more consumers; despite challenges from patent expirations and market competition, Pfizer has other drugs in development, indicating its potential for long-term survival and growth.
See More
