FDA spurs Eli Lilly

Article Excerpt

ELI LILLY & CO., $588.44, is a Power Buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 949.3 million; Market cap: $579.9 billion; Dividend yield: 0.7%) has just gained a major approval from the U.S. Food and Drug Administration (FDA). Lilly’s Mounjaro drug for type 2 diabetes launched in May 2022. And now, the FDA has approved Mounjaro as a weight-loss treatment. That new drug, branded as Zepbound, offers the same effects as rival drugs like Ozempic and Wegovy—but could prove even more effective, and with fewer side effects. All in all, obesity remains a major U.S. health concern, and Zepbound promises to be a huge blockbuster drug for Lilly. Either way, the company’s prospects are bright. It has a strong drug portfolio and a full development pipeline. It also spends a very high 25% of sales on R&D. Eli Lilly is a Power Buy. Buy…