Sign up for our free daily newsletter
Get the latest news and some fun stuff
in your inbox every day
We've been actively accumulating Eli Lilly shares for clients for the last 18 months. We are very bullish on the prospects for their market-leading weight-loss drugs. They also have a very good business making other drugs.
The company had Q4 results out last week, and they were well-received. Revenues for the period increased by 45% compared to the year before. Profits were over 100% higher. The stock is up 12% year to date.
When a company is growing top-line revenue very quickly it's hard to value, and it's share price may be volatile. A slight change in their sales forecast can lead to some wild moves. Investors need to concentrate on the story, hold the stock, and not worry too much about their entry price. Buy some more, and wait to see where you are in 5 years time.
GLP-1 drugs like Zepbound turn off your hunger reflex, so you don't eat so much. Most users lose over 20% of their body weight in about 6 months, with very minor side effects. After years of ineffective dieting, these treatments are a revelation to those who take them, and stay on them.
Eli Lilly's Zepbound is slightly more effective than Ozempic, made by competitor Novo Nordisk. Their next version, Retatrutide, will be even better. These drugs have to be injected currently, which can be challenging for those who suffer from needle anxiety, but Lilly has a treatment in trials called Orforglipron that can be taken orally.
The company has put enormous effort into expanding its manufacturing plants and honing its product pipeline through further research and licensing. Americans prefer to support American companies.
Currently, these drugs are used by rich people who pay for them themselves, at a cost of more than $1 000 per month. In future, medical aids, health insurers and life insurers will cover everyone who is obese. They will do that because a healthier customer will live longer and pay more premiums.
We would like all Vestact clients to hold Eli Lilly in their portfolios, with a solid allocation, up to 10%. If you are not there yet, send some money to buy some more.
