Eli Lilly Leverages AI to Transform Drug Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 15 2026
0mins
Should l Buy LLY?
Source: Fool
- AI Platform Launch: Eli Lilly launched the TuneLab platform in September last year, allowing other drugmakers digital access to proprietary data on drug molecule performance, which saves significant time and money, enabling companies to focus on their best research projects.
- Major Investment Partnership: Eli Lilly partnered with Nvidia, committing $1 billion to build a supercomputer aimed at deepening disease understanding and advancing drug development, marking a significant step in the company's AI drug development efforts.
- Huge Market Potential: According to Straits Research, the AI-powered drug discovery industry is expected to grow at an annual rate of 30% through 2034, reaching over $20 billion, providing Eli Lilly with substantial future revenue opportunities.
- Increased Collaboration Opportunities: By owning a powerful drug development platform, Eli Lilly can not only optimize its own research but also establish partnerships with smaller pharmaceutical companies, helping them bring new drugs to market and enhancing its competitive edge.
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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: 1042.150
Low
950.00
Averages
1192
High
1500
Current: 1042.150
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 Financial Outlook Remains Strong Amid Market Concerns
- Market Resilience: Eli Lilly's leadership in the diabetes medication market allows it to maintain strong financial performance during economic downturns, with analysts predicting that demand for its medicines will remain largely unaffected despite growing concerns over a potential AI bubble burst.
- Innovative Pipeline: Eli Lilly's Zepbound (tirzepatide) leads the weight-loss drug market, and the company is expected to launch new anti-obesity products like orforglipron and retatrutide in the coming years, which will further solidify its market position and drive revenue growth.
- Diversified Development: Beyond its core therapeutic areas, Eli Lilly has a robust pipeline across oncology, immunology, and neuroscience, demonstrating a strategic focus on diversification that enhances its resilience against market fluctuations.
- Dividend Appeal: With a 103.5% increase in dividends over the past five years, Eli Lilly presents an attractive option for dividend-seeking investors, making it a compelling long-term hold even amidst potential market volatility.
See More
UK's MHRA Grants Approval for Imlunestrant Tosylate (Inluriyo) as a Breast Cancer Treatment
UK's MHRA Approval: The UK's Medicines and Healthcare products Regulatory Agency (MHRA) has approved the use of the drug Imunest for the treatment of breast cancer.
Imunest's Function: This drug is designed to enhance the immune response against breast cancer cells, potentially improving treatment outcomes for patients.
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ELI LILLY: FDA GRANTS LABEL EXPANSION FOR ZEPBOUND (TIRZEPATIDE) TO ALLOW FOUR-DOSE SINGLE-PATIENT KWIKPEN USE
FDA Approval: The FDA has approved an expansion of the label for Zepbound (tirzepatide).
New Indication: The updated label now includes four-dose single-patient use of the medication.
See More
Eli Lilly Strengthens Lead in Weight Loss Drug Market
- Market Share Leadership: Eli Lilly currently holds a 60% share of the U.S. weight loss drug market, surpassing Novo Nordisk's offerings, demonstrating strong competitiveness in this rapidly growing sector and likely driving further revenue growth.
- Clinical Trial Advantage: In the latest clinical trial, Lilly's Zepbound helped patients lose over 25% of their weight over 84 weeks, compared to only 23% for Novo's CagriSema, indicating superior efficacy and solidifying its market leadership.
- Convenience Enhancement: Lilly's newly released Zepbound format holds a month's worth of doses in a single pen, improving medication convenience for patients, especially while traveling, which is expected to enhance patient adherence and market appeal.
- Broad Market Outlook: Analysts expect the weight loss drug market to reach nearly $100 billion over the next four years, with Lilly's new drug orforglipron and other potential products poised to drive further growth, despite facing challenges from competitors like Novo Nordisk.
See More
Eli Lilly's Dominance in the GLP-1 Market
- Market Share Growth: Eli Lilly has captured a 60% share of the U.S. GLP-1 drug market, surpassing Novo Nordisk, which indicates strong competitive positioning in the weight loss drug sector and is expected to drive further revenue growth.
- Clinical Trial Superiority: In the latest clinical trials, Lilly's Zepbound outperformed Novo Nordisk's CagriSema, with a 15mg dosage of tirzepatide resulting in over 25% weight loss over 84 weeks, providing robust support for Lilly's market position.
- Convenience Innovation: Lilly's new Zepbound format, which holds a month's worth of doses, enhances patient convenience, particularly during travel, and is expected to improve patient adherence, thereby boosting sales.
- Expansive Market Outlook: Analysts project the GLP-1 market to reach nearly $100 billion in the next four years, with Lilly's orforglipron and other potential drugs likely to drive further growth, despite facing challenges from Novo Nordisk and other competitors.
See More
Novo Nordisk's Long-Term Investment Potential
- Recurring Revenue Stream: As one of the world's largest insulin producers, Novo Nordisk benefits from a steady revenue stream due to the regular need for insulin among diabetes patients, establishing a solid foundation for long-term growth.
- Dividend Payout Ratio: Despite trailing Eli Lilly in the GLP-1 weight-loss drug market, Novo Nordisk maintains a comfortable 40% payout ratio over the past 12 months, never exceeding 50%, indicating financial resilience even during economic downturns.
- High Dividend Yield: With a dividend yield of 3.9%, significantly above the pharmaceutical average of 1.7%, Novo Nordisk's strong diabetes business supports robust shareholder returns, enhancing its attractiveness as an investment.
- Innovative Drug Development: The recent launch of Novo Nordisk's first GLP-1 oral pill, while facing stiff competition, is expected to help regain market share in the short term, showcasing the company's ongoing commitment to innovation in the emerging drug niche.
See More
Eli Lilly's Financial Outlook Remains Strong Amid Market Concerns
- Market Resilience: Eli Lilly's leadership in the diabetes medication market allows it to maintain strong financial performance during economic downturns, with analysts predicting that demand for its medicines will remain largely unaffected despite growing concerns over a potential AI bubble burst.
- Innovative Pipeline: Eli Lilly's Zepbound (tirzepatide) leads the weight-loss drug market, and the company is expected to launch new anti-obesity products like orforglipron and retatrutide in the coming years, which will further solidify its market position and drive revenue growth.
- Diversified Development: Beyond its core therapeutic areas, Eli Lilly has a robust pipeline across oncology, immunology, and neuroscience, demonstrating a strategic focus on diversification that enhances its resilience against market fluctuations.
- Dividend Appeal: With a 103.5% increase in dividends over the past five years, Eli Lilly presents an attractive option for dividend-seeking investors, making it a compelling long-term hold even amidst potential market volatility.
See More
UK's MHRA Grants Approval for Imlunestrant Tosylate (Inluriyo) as a Breast Cancer Treatment
UK's MHRA Approval: The UK's Medicines and Healthcare products Regulatory Agency (MHRA) has approved the use of the drug Imunest for the treatment of breast cancer.
Imunest's Function: This drug is designed to enhance the immune response against breast cancer cells, potentially improving treatment outcomes for patients.
See More
ELI LILLY: FDA GRANTS LABEL EXPANSION FOR ZEPBOUND (TIRZEPATIDE) TO ALLOW FOUR-DOSE SINGLE-PATIENT KWIKPEN USE
FDA Approval: The FDA has approved an expansion of the label for Zepbound (tirzepatide).
New Indication: The updated label now includes four-dose single-patient use of the medication.
See More
Eli Lilly Strengthens Lead in Weight Loss Drug Market
- Market Share Leadership: Eli Lilly currently holds a 60% share of the U.S. weight loss drug market, surpassing Novo Nordisk's offerings, demonstrating strong competitiveness in this rapidly growing sector and likely driving further revenue growth.
- Clinical Trial Advantage: In the latest clinical trial, Lilly's Zepbound helped patients lose over 25% of their weight over 84 weeks, compared to only 23% for Novo's CagriSema, indicating superior efficacy and solidifying its market leadership.
- Convenience Enhancement: Lilly's newly released Zepbound format holds a month's worth of doses in a single pen, improving medication convenience for patients, especially while traveling, which is expected to enhance patient adherence and market appeal.
- Broad Market Outlook: Analysts expect the weight loss drug market to reach nearly $100 billion over the next four years, with Lilly's new drug orforglipron and other potential products poised to drive further growth, despite facing challenges from competitors like Novo Nordisk.
See More
Eli Lilly's Dominance in the GLP-1 Market
- Market Share Growth: Eli Lilly has captured a 60% share of the U.S. GLP-1 drug market, surpassing Novo Nordisk, which indicates strong competitive positioning in the weight loss drug sector and is expected to drive further revenue growth.
- Clinical Trial Superiority: In the latest clinical trials, Lilly's Zepbound outperformed Novo Nordisk's CagriSema, with a 15mg dosage of tirzepatide resulting in over 25% weight loss over 84 weeks, providing robust support for Lilly's market position.
- Convenience Innovation: Lilly's new Zepbound format, which holds a month's worth of doses, enhances patient convenience, particularly during travel, and is expected to improve patient adherence, thereby boosting sales.
- Expansive Market Outlook: Analysts project the GLP-1 market to reach nearly $100 billion in the next four years, with Lilly's orforglipron and other potential drugs likely to drive further growth, despite facing challenges from Novo Nordisk and other competitors.
See More
Novo Nordisk's Long-Term Investment Potential
- Recurring Revenue Stream: As one of the world's largest insulin producers, Novo Nordisk benefits from a steady revenue stream due to the regular need for insulin among diabetes patients, establishing a solid foundation for long-term growth.
- Dividend Payout Ratio: Despite trailing Eli Lilly in the GLP-1 weight-loss drug market, Novo Nordisk maintains a comfortable 40% payout ratio over the past 12 months, never exceeding 50%, indicating financial resilience even during economic downturns.
- High Dividend Yield: With a dividend yield of 3.9%, significantly above the pharmaceutical average of 1.7%, Novo Nordisk's strong diabetes business supports robust shareholder returns, enhancing its attractiveness as an investment.
- Innovative Drug Development: The recent launch of Novo Nordisk's first GLP-1 oral pill, while facing stiff competition, is expected to help regain market share in the short term, showcasing the company's ongoing commitment to innovation in the emerging drug niche.
See More
