Why Eli Lilly Stock Holds My Attention: 2 Key Reasons

Investors looking for promising opportunities in the pharmaceutical sector should consider Eli Lilly & Co. (LLY). The company has shown substantial growth, particularly in its revenues and earnings for the third quarter of the year. Eli Lilly’s quarterly revenue surged by 54% year over year, reaching $17.6 billion. Concurrently, the adjusted earnings per share (EPS) skyrocketed to nearly $7.02, marking an impressive 495% increase.

Future Earnings Projections

Management forecasts impressive revenue growth. For 2025, Eli Lilly expects revenues between $63 billion and $65 billion, a rise from the previous estimate of $60 billion to $62 billion. The adjusted EPS is projected to be in the range of $23 to $23.70, improving from an earlier estimate of $21.70 to $23.

Market Performance in 2025

Eli Lilly’s shares have increased by 17.5% so far in 2025, outperforming the S&P 500. Analysts believe there’s significant upside potential heading into 2026.

Key Growth Drivers

• Expanding GLP-1 Portfolio: Eli Lilly’s diabetes and weight loss treatments have been key drivers of growth.
• Market Dominance: The company holds a 57.9% share of the incretin analog market, up from the previous quarter.

Product Highlights

Eli Lilly’s GLP-1 drug, tirzepatide, marketed as Zepbound for weight management and Mounjaro for type 2 diabetes, has seen notable growth. In Q3, Zepbound prescriptions in the U.S. tripled compared to the previous year, capturing 63% of branded weight loss prescriptions. Additionally, Mounjaro’s total U.S. prescriptions grew over 60%, establishing it as the most prescribed incretin analog for diabetes with a 45% market share.

International Expansion

Mounjaro is available in 55 countries, with international sales increasing by 56% in the last quarter. Due to limited insurance coverage for weight loss treatments, about 75% of Mounjaro’s revenue outside the U.S. comes from out-of-pocket payments, highlighting the clinical demand for this drug.

Upcoming Developments

Eli Lilly is pushing ahead with its GLP-1 drug developments. The company has completed phase 3 trials for orforglipron, an oral GLP-1 candidate. One trial indicated that orforglipron outperformed the highest dose of oral semaglutide in terms of blood sugar control and weight loss. Eli Lilly plans to file for FDA approval, with a potential U.S. launch in 2026. An oral option could significantly enhance patient convenience.

Additional Growth Candidates

Other developments include the ATTAIN-MAINTAIN study, assessing weight maintenance in patients previously treated with injectable GLP-1 medications. Additionally, Eli Lilly anticipates noteworthy outcomes from trials of retatrutide, another GLP-1 candidate aimed at faster weight loss results.

Regulatory Approvals

• Inluriyo: Recently approved for treatment of advanced breast cancer with specific mutations.
• Kisunla: Approved in the EU for early symptomatic Alzheimer’s disease.

Valuation Considerations

Eli Lilly currently trades at approximately 29 times forward earnings. Despite this elevated valuation, the company’s various growth catalysts position it as an attractive investment opportunity.