Buy Eli Lilly Stock

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Buy Eli Lilly Stock

Buy Eli Lilly Stock to Capitalize on GLP-1 Growth

GLP-1 drugs are very popular these days. A recent report from Gallup shows that around 11% of the US adults are taking GLP-1 drugs for weight loss. Back in 2024, only 3% of people were using the drugs. This clearly shows the numbers have increased in just a few years.

Also, 9/10 US citizens know that there are drugs available for weight loss. Once again, people are more aware of their options, and this is good news for GLP-1 drug makers like Novo Nordisk and Eli Lilly.

Eli Lilly Now Makes Oral GLP-1 Drug

As of now, Eli Lilly stands to gain the most from this increased use of GLP-1 drugs. It makes a drug called tMounjaro which is used for type 2 diabetes. Another drug is Zepbound, which is marketed for obesity. These two drugs are the best-selling drugs in the US market for their respective categories.

To give you some perspective, Eli Lilly made $4.2 billion from selling Zepbound. Similarly, the company made $8.7 billion from Mounjaro.

But the biggest news of all is that Eli Lilly has also made an oral weight loss drug. It is called Foundayo, and it was recently approved by the authorities. Analysts think the rollout of this new drug will significantly boost the revenue of Eli Lilly.

These drugs were a complete success and a key reason why Eli Lilly's market cap is now above $1 trillion. So, if you want to capitalize on the increased usage of GLP-1 drugs, the best option is Eli Lilly stock.

However, the Eli Lilly stock does look expensive. It is trading at a forward P/E of 33, which is a lot higher than the S&P 500's forward P/E of 20. But that's a price you will have to pay for a stock that's growing at a fast pace.

The bottom line is that Eli Lilly stock is a good option for those seeking an entry into the pharma sector. It is expected to grow at a faster pace as the usage of GLP-1 drugs increases across the USA.

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