Bubble Warning: Unrealistic Growth Priced In And Multiple Risk Factors For Eli Lilly


  • The weight loss drug, Zepbound, faces immense competition and may lose its battle once a pill form of weight loss drug becomes available.
  • The company has a surprisingly low diversification of revenues.
  • Revenues are susceptible to upcoming LOEs. Trulicity is set to lose exclusivity in 2027 in the U.S.
  • Our DCF model suggests that annual growth of 35% is priced in.
  • Eli Lilly would need $84 billion per year in revenues over the next five years to justify its valuation. There is no way Eli Lilly will reach these levels.

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It’s time for us to share with you our view on Eli Lilly (NYSE: LLY). There’s been a lot of hype surrounding their contribution to the fight against diabetes and obesity, and accordingly, the shares have experienced a

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. I have no business relationship with any company whose stock is mentioned in this article.

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