Eli & Lilly Stock: A Comprehensive Guide

Introduction

Eli Lilly and Company (LLY) is a global pharmaceutical company that has been in business for over 140 years. The company is headquartered in Indianapolis, Indiana, and has operations in more than 125 countries. Lilly is a leader in the development and marketing of innovative medicines, including treatments for cancer, diabetes, and Alzheimer's disease.

Eli & Lilly Stock Performance

LLY has been a strong performer over the past decade, outperforming the S&P 500 Index by a wide margin. The stock has returned an average of 15% per year over the past 10 years, compared to 9% for the S&P 500. In 2021, LLY stock reached an all-time high of $243.32.

Key Financial Metrics

• Revenue: $28.3 billion in 2021
• Net income: $7.3 billion in 2021
• Earnings per share: $7.55 in 2021
• Market capitalization: $260 billion as of March 2023

Dividend History

LLY has a long history of paying dividends to shareholders. The company has increased its dividend for 30 consecutive years, making it one of the few dividend aristocrats in the pharmaceutical industry. In 2022, LLY paid a quarterly dividend of $1.60 per share, which equates to an annual yield of 1.3%.

Eli & Lilly's Business Segments

Lilly's business is divided into three segments:

• Pharmaceutical Products: This segment includes the company's prescription drugs, such as Trulicity (for type 2 diabetes), Verzenio (for breast cancer), and Cyramza (for lung cancer).
• Animal Health: This segment includes the company's products for pets and livestock, such as Elanco (for fleas and ticks) and Galliprant (for osteoarthritis).
• Consumer Healthcare: This segment includes the company's over-the-counter products, such as Cialis (for erectile dysfunction) and Humalog (for diabetes).

Eli & Lilly's Pipeline

Lilly has a strong pipeline of new drugs in development, which is expected to drive growth in the coming years. The company has over 20 drugs in late-stage development, including treatments for Alzheimer's disease, cancer, and diabetes.

Eli & Lilly's Competitive Advantages

Lilly has a number of competitive advantages, including:

• Strong research and development capabilities: Lilly has one of the largest research and development budgets in the pharmaceutical industry. The company invests heavily in basic research, which has led to the development of a number of innovative new drugs.
• Leading market share in key therapeutic areas: Lilly is a leader in the development and marketing of drugs for cancer, diabetes, and Alzheimer's disease. The company's drugs have a strong track record of efficacy and safety, which has led to high market share in these key therapeutic areas.
• Global reach: Lilly has a global reach, with operations in more than 125 countries. This gives the company a competitive advantage in developing and marketing drugs for a global market.

Eli & Lilly's Key Risks

Lilly faces a number of risks, including:

• Competition from generic drugs: Lilly's drugs face competition from generic drugs, which can erode market share and profitability.
• Regulatory risks: Lilly's drugs are subject to regulatory approval, which can be a lengthy and expensive process.
• Clinical trial risks: Lilly's drugs are subject to clinical trials, which can be risky and expensive.

Investment Thesis

Lilly is a well-managed company with a strong pipeline of new drugs in development. The company's drugs have a strong track record of efficacy and safety, which has led to high market share in key therapeutic areas. Lilly is also a leader in research and development, which is expected to drive growth in the coming years. Overall, Lilly is a solid investment for investors seeking exposure to the pharmaceutical industry.

Tables

Table 1: Eli & Lilly's Financial Metrics

Table 2: Eli & Lilly's Dividend History

Table 3: Eli & Lilly's Business Segments

Table 4: Eli & Lilly's Pipeline