Eli Lilly & Co Is Positioned Well Among the Large Biopharma Companies

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What we like about Eli Lilly & Co？

Eli Lilly & Co is positioned well among the large biopharma companies, with no major LoEs (Loss of Exclusivities) approaching and durable growth behind blockbuster products Mounjaro, Verzenio, and lebrikizumab.

About the company

Eli Lilly & Co discovers, develops, manufactures, and sells pharmaceutical products. Notably, Eli Lilly & Co is a key leader in the budding GLP-1 market, with Mounjaro and Trulicity on the market. The company’s pharmaceuticals fall into five categories: Diabetes & Metabolic (51% of 2022 sales), Immunology (12%), Neuroscience (5%), Oncology (20%), and Other (12%).

It is one of the pioneers in diabetes having modernized the market with next generation insulins and GLP-1.

Eli Lilly & Co has proven track record of sustaining above-market sales growth, and is one of the fastest growing company within its peer set. It is one of the pioneers in diabetes having modernized the market with next generation insulins and GLP-1. Data from the SURMOUNT studies (Feb 6, 2023) have demonstrated it has the most effective weight loss profile seen from GLP-1’s. Per UBS, tirzepatide is set to become the leading obesity therapy of choice, and has the potential to beat street estimates in the near term.

GLP-1 – Large obesity-related co-morbidities as well as weight loss market

According to Eli Lilly & Co and Novo’s management, GLP-1s are not just weight loss drugs. Other target indications include serious co-morbid conditions such as sleep apnea, osteoarthritis, heart failure, kidney disease and cardiovascular diseases.

Mounjaro – Mounjaro (Eli Lilly & Co’s GLP-1) is a potential mega-blockbuster with use-case across several cardio-metabolic indications. The company has seen robust US update since launch.

This demonstrates its strong competitive edge, both from product perspective, as well as patient reach prospective.

Eli Lilly & Co’s GLP-1 sales potential

According to Wells Fargo Securities, LLC (Oct 2023), overall GLP-1 class can generates sales of US$110 bn by 2033, and Eli Lilly & Co’s GLP-1s can generate sales of US$65 bn in obesity/ diabetes.

Eli Lilly & Co – Upcoming Catalysts

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