Eli Lilly's GLP-1 Business Remains Strong
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy LLY?
Source: NASDAQ.COM
- Significant Revenue Growth: Eli Lilly reported first-quarter revenue of $19.8 billion, reflecting a 56% year-over-year increase, a remarkable growth rate that underscores its robust potential in a competitive market.
- Enhanced Profitability: The adjusted earnings per share reached $8.55, up 156% from the previous year, primarily driven by the strong performance of its GLP-1 portfolio, particularly with Mounjaro and Zepbound sales increasing by 125% and 80%, respectively, laying a solid foundation for future profit growth.
- New Product Market Expansion: The approval of Foundayo in April, an oral GLP-1 medication, is expected to expand market share significantly, as 80% of its new patients had never used GLP-1 drugs before, potentially enhancing overall business performance.
- Potential FDA Policy Benefit: The FDA's proposal to remove tirzepatide from the clinical need list could allow outsourcing facilities to compound drugs at scale under certain conditions, which may alleviate the pricing pressure from cheaper compounded versions in the market, further solidifying Eli Lilly's position in the GLP-1 business.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LLY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 987.050
Low
950.00
Averages
1192
High
1500
Current: 987.050
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.
ELI LILLY SUBMITS SEC FILING FOR EIGHT-PART NOTES OFFERING WORTH UP TO $9 BILLION
- Company Filing: Eli Lilly has filed for an offering of up to $9 billion in senior notes.
- Purpose of Offering: The proceeds from this offering are intended for general corporate purposes.
See More
Weight-Loss Pills Boost Novo Nordisk and Eli Lilly Shares
- Market Expansion Potential: Novo Nordisk's Wegovy pill achieved first-quarter sales about twice expectations, indicating that oral weight-loss medications could attract millions more patients, potentially driving market growth and alleviating pricing pressures.
- Strong Prescription Data: By mid-April, weekly prescriptions for the Wegovy pill reached approximately 207,000, suggesting that demand from new patients exceeded expectations, with nearly 80% of users being treatment-naive, highlighting significant market expansion potential.
- Changing Competitive Landscape: Since its U.S. launch in April, Eli Lilly's Foundayo has been prescribed by over 8,000 doctors, one-third of whom are new to prescribing oral GLP-1 drugs, indicating that the market is attracting new user demographics.
- Pricing Risks and Market Outlook: Although Novo Nordisk's U.S. sales fell 11% due to lower realized prices, analysts believe the rapid acceptance of oral medications may offset this impact, enabling both companies to grow in the expanding obesity market.
See More
Eli Lilly's Dominance in the Anti-Obesity Drug Market
- Market Leadership: Eli Lilly began to dominate the anti-obesity drug market in 2025 due to stronger products and better execution, despite Novo Nordisk's previous leadership, indicating its significant share in a multi-billion dollar market.
- Significant Profitability: In Q1 2026, Lilly reported a net income of $7.4 billion, more than doubling year-over-year, primarily driven by rapid sales growth of its tirzepatide-based drugs, highlighting that its GLP-1 drug franchise is a key profitability driver.
- Production Capacity Expansion: Lilly has heavily invested in expanding production capacity, providing a structural advantage that smaller competitors cannot replicate, ensuring it can meet the strong demand for GLP-1 drugs in the future.
- Relative Investment Safety: Compared to smaller companies that rely on a single drug, Lilly's diversified pharmaceutical portfolio and strong cash flow demonstrate its relative safety and sustainable growth potential in the anti-obesity drug market.
See More
Eli Lilly Reports 56% Revenue Surge in Q1 2026
- Significant Revenue Growth: Eli Lilly's Q1 2026 revenue surged to $19.8 billion, a 56% increase driven by strong demand for metabolic treatments Mounjaro and Zepbound, which generated $8.7 billion and $4.1 billion in global sales respectively, showcasing the company's robust market competitiveness.
- Profitability Improvement: Despite lower realized prices, Lilly's GAAP EPS rose by 170% to $8.26, while non-GAAP EPS reached $8.55, reflecting successful strategies in cost control and product demand management.
- Regulatory Milestone: The FDA approved Foundayo (orforglipron), the only GLP-1 pill without food or water restrictions, expected to broaden patient access to obesity treatments, further enhancing the company's market position.
- Optimistic Outlook: Eli Lilly raised its full-year 2026 financial guidance to a range of $82.0 billion to $85.0 billion, a $2 billion increase from previous estimates, while non-GAAP EPS guidance was also raised to $35.50 to $37.00, demonstrating the company's confidence in future growth.
See More
Eli Lilly Invests $4.5 Billion in Indiana for Advanced Therapies
- Facility Opening: Eli Lilly opened the Lilly Lebanon Advanced Therapies center in Indiana on Wednesday, focusing on genetic disease treatments, which is expected to significantly enhance its production capabilities in genetic medicine.
- Increased Capital Investment: The company announced an additional investment of $4.5 billion for the new facility, bringing its total investment in Indiana to $21 billion since 2020, reflecting strong confidence in future drug demand.
- API Production Plans: Lilly plans to open the Lilly Lebanon API facility by 2027, which will become the largest active pharmaceutical ingredient production site in U.S. history, further solidifying its leadership in the pharmaceutical industry.
- Positive Market Reaction: Despite LLY stock being down nearly 8% this year, it has risen about 28% over the past 12 months, with retail investors expressing an 'extremely bullish' sentiment, indicating market recognition of its investment strategy.
See More
Novo Nordisk CEO: Seeking More Deals to Broaden Pipeline
- Active Business Development: Novo Nordisk CEO Mike Doustdar stated that the company is actively seeking deals with other firms that have complementary assets to fulfill its ambition of helping hundreds of millions of patients, demonstrating its strategic commitment in the competitive obesity drug market.
- Market Competition Pressure: Although Novo Nordisk pioneered the GLP-1 weight loss drug market, rival Eli Lilly has surpassed it in market share for weekly GLP-1 injections, highlighting the challenges the company faces in maintaining its leadership position.
- Optimistic Pipeline Outlook: Doustdar expressed optimism about upcoming treatments, particularly mentioning CagriSema and zenagamtide, which are expected to receive approval by the end of the year, indicating Novo Nordisk's strong R&D capabilities within the industry.
- Increased Profit Guidance: Following better-than-expected performance of the Wegovy pill, Novo Nordisk raised its full-year profit guidance, reflecting the company's confidence in future performance, which may attract more investor interest.
See More
ELI LILLY SUBMITS SEC FILING FOR EIGHT-PART NOTES OFFERING WORTH UP TO $9 BILLION
- Company Filing: Eli Lilly has filed for an offering of up to $9 billion in senior notes.
- Purpose of Offering: The proceeds from this offering are intended for general corporate purposes.
See More
Weight-Loss Pills Boost Novo Nordisk and Eli Lilly Shares
- Market Expansion Potential: Novo Nordisk's Wegovy pill achieved first-quarter sales about twice expectations, indicating that oral weight-loss medications could attract millions more patients, potentially driving market growth and alleviating pricing pressures.
- Strong Prescription Data: By mid-April, weekly prescriptions for the Wegovy pill reached approximately 207,000, suggesting that demand from new patients exceeded expectations, with nearly 80% of users being treatment-naive, highlighting significant market expansion potential.
- Changing Competitive Landscape: Since its U.S. launch in April, Eli Lilly's Foundayo has been prescribed by over 8,000 doctors, one-third of whom are new to prescribing oral GLP-1 drugs, indicating that the market is attracting new user demographics.
- Pricing Risks and Market Outlook: Although Novo Nordisk's U.S. sales fell 11% due to lower realized prices, analysts believe the rapid acceptance of oral medications may offset this impact, enabling both companies to grow in the expanding obesity market.
See More
Eli Lilly's Dominance in the Anti-Obesity Drug Market
- Market Leadership: Eli Lilly began to dominate the anti-obesity drug market in 2025 due to stronger products and better execution, despite Novo Nordisk's previous leadership, indicating its significant share in a multi-billion dollar market.
- Significant Profitability: In Q1 2026, Lilly reported a net income of $7.4 billion, more than doubling year-over-year, primarily driven by rapid sales growth of its tirzepatide-based drugs, highlighting that its GLP-1 drug franchise is a key profitability driver.
- Production Capacity Expansion: Lilly has heavily invested in expanding production capacity, providing a structural advantage that smaller competitors cannot replicate, ensuring it can meet the strong demand for GLP-1 drugs in the future.
- Relative Investment Safety: Compared to smaller companies that rely on a single drug, Lilly's diversified pharmaceutical portfolio and strong cash flow demonstrate its relative safety and sustainable growth potential in the anti-obesity drug market.
See More
Eli Lilly Reports 56% Revenue Surge in Q1 2026
- Significant Revenue Growth: Eli Lilly's Q1 2026 revenue surged to $19.8 billion, a 56% increase driven by strong demand for metabolic treatments Mounjaro and Zepbound, which generated $8.7 billion and $4.1 billion in global sales respectively, showcasing the company's robust market competitiveness.
- Profitability Improvement: Despite lower realized prices, Lilly's GAAP EPS rose by 170% to $8.26, while non-GAAP EPS reached $8.55, reflecting successful strategies in cost control and product demand management.
- Regulatory Milestone: The FDA approved Foundayo (orforglipron), the only GLP-1 pill without food or water restrictions, expected to broaden patient access to obesity treatments, further enhancing the company's market position.
- Optimistic Outlook: Eli Lilly raised its full-year 2026 financial guidance to a range of $82.0 billion to $85.0 billion, a $2 billion increase from previous estimates, while non-GAAP EPS guidance was also raised to $35.50 to $37.00, demonstrating the company's confidence in future growth.
See More
Eli Lilly Invests $4.5 Billion in Indiana for Advanced Therapies
- Facility Opening: Eli Lilly opened the Lilly Lebanon Advanced Therapies center in Indiana on Wednesday, focusing on genetic disease treatments, which is expected to significantly enhance its production capabilities in genetic medicine.
- Increased Capital Investment: The company announced an additional investment of $4.5 billion for the new facility, bringing its total investment in Indiana to $21 billion since 2020, reflecting strong confidence in future drug demand.
- API Production Plans: Lilly plans to open the Lilly Lebanon API facility by 2027, which will become the largest active pharmaceutical ingredient production site in U.S. history, further solidifying its leadership in the pharmaceutical industry.
- Positive Market Reaction: Despite LLY stock being down nearly 8% this year, it has risen about 28% over the past 12 months, with retail investors expressing an 'extremely bullish' sentiment, indicating market recognition of its investment strategy.
See More
Novo Nordisk CEO: Seeking More Deals to Broaden Pipeline
- Active Business Development: Novo Nordisk CEO Mike Doustdar stated that the company is actively seeking deals with other firms that have complementary assets to fulfill its ambition of helping hundreds of millions of patients, demonstrating its strategic commitment in the competitive obesity drug market.
- Market Competition Pressure: Although Novo Nordisk pioneered the GLP-1 weight loss drug market, rival Eli Lilly has surpassed it in market share for weekly GLP-1 injections, highlighting the challenges the company faces in maintaining its leadership position.
- Optimistic Pipeline Outlook: Doustdar expressed optimism about upcoming treatments, particularly mentioning CagriSema and zenagamtide, which are expected to receive approval by the end of the year, indicating Novo Nordisk's strong R&D capabilities within the industry.
- Increased Profit Guidance: Following better-than-expected performance of the Wegovy pill, Novo Nordisk raised its full-year profit guidance, reflecting the company's confidence in future performance, which may attract more investor interest.
See More
