Record Lobbying Expenditures by Drugmakers and Insurers Amid Healthcare Cost Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: seekingalpha
- Surge in Lobbying Expenditures: The Pharmaceutical Research and Manufacturers of America (PhRMA) reported nearly $38 million in lobbying expenditures for 2024, a 22% increase, marking a historic high that underscores the pharmaceutical industry's commitment to influencing policy.
- Individual Companies Intensify Efforts: Among the 13 Fortune 500 drugmakers, nine reported their highest lobbying expenditures in at least a decade, with Bristol-Myers Squibb (BMY) spending $10 million, a 91% year-over-year increase, indicating a heightened urgency to shape the regulatory landscape.
- Insurance Sector Lobbying: The American Health Insurance Plans (AHIP) and the American Hospital Association (AHA) spent $17.2 million and $25.5 million respectively on lobbying, reflecting the active role of insurers and healthcare providers in influencing healthcare expenditure policies.
- Policy Context Impact: The increase in lobbying activities coincides with the Trump administration's efforts to reduce healthcare costs, highlighting the industry's sensitivity to policy changes, particularly regarding Medicare drug price negotiations and tax credit adjustments.
Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1192 USD with a low forecast of 950.00 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1062.750
Low
950.00
Averages
1192
High
1500
Current: 1062.750
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.
