Eli Lilly experienced a 2% decline last week, a movement that contrasts with a broader market drop of 3%. The company’s share price was likely influenced by its strategic collaboration with BigHat Biosciences and positive results from its ACHIEVE-1 Phase 3 trial for orforglipron. These positive developments countered the market’s broader dip caused by tech sector weaknesses and economic concerns following recent economic tariff suggestions influencing investor sentiments. These events highlight the company’s continued advancements in the biotech sector, potentially bolstering its market position despite the overall market downturn.
We’ve identified 2 risks for Eli Lilly (1 doesn’t sit too well with us) that you should be aware of.
NYSE:LLY Revenue & Expenses Breakdown as at Apr 2025
Eli Lilly’s recent partnership with BigHat Biosciences and the positive clinical trial results for orforglipron are significant developments that could influence its narrative, especially regarding revenue and earnings projections. As the company expands its manufacturing capabilities and continues with strategic collaborations like its partnership with OpenAI, these actions may enhance its ability to meet the growing demand for its products and introduce new treatments, potentially boosting future revenue streams. These advancements align with its ongoing efforts to solidify its presence in the competitive biotech sector.
Over the last five years, Eli Lilly has achieved a total shareholder return of 398.62%, demonstrating impressive growth. In contrast, over the past year, the company’s performance surpassed the US Pharmaceuticals industry, which saw an 8% decline. This relative performance highlights Eli Lilly’s resilience and ability to outperform its peers even amid broader market challenges.
The recent share price decline of 2% is relatively modest compared to the broader market drop, underlining the company’s stability. Despite this, the current share price of US$726.24 reflects a substantial discount compared to the consensus analyst price target of US$1,011.47, suggesting potential upside based on future earnings growth and revenue expansion. Analysts remain optimistic about Eli Lilly’s earnings and revenue forecasts, supporting a projected price movement aligned with the company’s strategic initiatives and market position. As the company aims to further reduce its shares through buybacks, potential enhancements in earnings per share may provide additional value to investors.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NYSE:LLY.
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