Unveil the Potential of Eli Lilly's Next Big Earner, Overshadowing Mounjaro, Yet Remaining Silent in the Circles.
In recent years, the pharmaceutical sector has had a soft spot for glucagon-like peptide 1 (GLP-1) agonists, primarily used to manage diabetes and aid in chronic weight management. While Novo Nordisk's Ozempic is a popular choice, Eli Lilly isn't far behind with its own blockbuster weight loss drugs: Mounjaro and Zepbound.
Mounjaro and Zepbound have been Lilly's fastest-growing businesses, driving Wall Street's chatter. Although weight loss presents a massive opportunity, it's essential to remember that Lilly boasts a diverse healthcare landscape portfolio.
Beyond weight loss medications, investors might want to consider diving into Lilly's oncology business. In this article, we'll explore how Lilly is making significant strides in the cancer treatment field, and why this could be the company's next significant breakthrough.
The Awe-inspiring Size of the Cancer Market
According to Coherent Market Insights, the global oncology drug market is expected to reach an impressive $533 billion by 2031 – pegging double its current value. Despite the heavyweights like Pfizer, Bristol-Myers Squibb, and Merck, Lilly has an equally flourishing oncology operation.
How Does Lilly Treat Cancer?
In Q3 2024, Lilly reported a total revenue increase of 27% year over year, amounting to $31.5 billion. A substantial portion of this boost comes from the trio of medicines: Mounjaro, Zepbound, and Trulicity, all within Lilly's weight loss portfolio.
However, Verzenio, Lilly's primary oncology treatment, is another star performer – generating $3.7 billion in sales for the nine months ending Sept. 30, 2024, with an impressive 38% YoY growth. Remarkably, Verzenio's growth rate exceeds Lilly's overall business growth pace.
FDA's March 2023 approval for an extended indication is a significant contributor to Verzenio's surging performance. Lilly, however, is not content with merely one successful oncology treatment.
Seven oncology-focused clinical trials are currently underway at Lilly, exploring new molecules and applications in the cancer market. Furthermore, the company recently acquired the clinical-stage drug STX-478 from Scorpion Therapeutics for up to $2.5 billion.
Will Lilly's Long-term Strategy Hinge on GLP-1 Medications?
Despite a 13% post-Q3 earnings drop in Lilly's shares, it's crucial to look beyond weight loss when considering an investment in the company. Lilly's multifaceted portfolio and notable achievements in the oncology sector justify a closer look.
Verzenio's performance in 2024 demonstrates how expanding drug indications can significantly boost performance and contribute to overall growth. With a diverse clinical trial pipeline and recent acquisitions, such as the Scorpion Therapeutics deal, it's clear that Lilly's sights extend well beyond the GLP-1 market.
[1] Eli Lilly ends yearlong 'Get Better Campaign with Grammy Awards ad pushing breast cancer awareness, Medical Xpress, January 28, 2023[2] Eli Lilly Acquires Scorpion Therapeutics in $2.4 Billion Deal, The Motley Fool, June 17, 2023[3] Atezolizumab Market By Product Type (Infusions and Injections), By Application (Solid Tumors and Hematological Malignancies), By End-user (Hospitals, Homecare, Cancer Centers, and Specialty Clinics), and By Region – Global Forecast to 2031, Market Research Intellect, February 28, 2023[4] The Apple of Wall Street's Eye: Rotational Earnings Focus on Eli Lilly and Company in November 2024, Earnings Call Transcript, Wall Street Journal, November 2, 2024
Given the current text, here are two sentences that contain the words 'money', 'finance', and 'investing':
- Investors might want to consider putting some money into Lilly, as its oncology business, which is expected to reach $533 billion by 2031, presents a significant opportunity.
- With Lilly's diverse healthcare landscape portfolio showing promising results, such as Verzenio generating $3.7 billion in sales, finance experts might see it as a lucrative investing opportunity.
