Eli Lilly Further Cements Itself As The King Of Weight Loss
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummaryEli Lilly leads the incretin analogs market, driven by Zepbound/Mounjaro and a robust drug pipeline targeting obesity, diabetes, and beyond.LLY’s retatrutide, a triple agonist, delivered up to 28.7% weight loss in Phase 3, significantly outperforming Zepbound and potentially expanding market share.Management is aggressively investing in R&D and US manufacturing, with over $50 billion committed and multiple pipeline drugs nearing commercialization.Despite stellar operational performance and raised 2025 guidance, LLY’s valuation is prohibitively high versus peers, tempering my bullishness. JHVEPhoto/iStock Editorial via Getty Images Some exciting things are coming through the pipeline right now. And I don't just mean any pipeline. I mean specifically the drug pipeline. The darling in the pharmaceutical space right now is undeniably EliThis article was written byDaniel Jones35.99K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsHow does retatrutide’s efficacy compare to Zepbound for weight loss?Retatrutide achieved up to 28.7% weight loss over 68 weeks, outperforming Zepbound’s 20.9% over 72 weeks, suggesting a significant efficacy advantage.What impact could LLY’s pipeline and manufacturing investments have on future growth?With over $50 billion in US manufacturing and $7.9 billion in R&D, LLY is positioned to accelerate pipeline commercialization and sustain leadership in high-growth therapeutic areas.How does LLY’s current valuation affect its investment appeal?LLY trades at a substantial premium to peers on earnings, cash flow, and EV/EBITDA, making its shares difficult to justify for value-oriented investors despite operational strength.Recommended For You