Topic: How To Invest

What is Pat’s commentary for the week of February 22, 2023

Article Excerpt

Drugmaker Eli Lilly has two potentially huge blockbuster drugs on the horizon—one for obesity, the other for Alzheimer’s. But even without these two, the company’s future is bright given the strength of its existing roster of drugs plus new drugs in its pipeline. The stock is up 108.4% since we first recommended it in our June 2020 issue of Power Growth Investor at $157.19. We think it has room to move a lot higher. Meanwhile, in 2019, Lilly finished spinning off its animal-health segment as a separate company called Elanco. We feel it has a bright future as well. The drug industry will enjoy great success over the next decade. But due to the nature of the business, results will vary widely and unpredictably from one drug company to another. A volatile market like the one we expect for drug stocks will include winners and losers. We think Lilly will be among the winners—as will its spinoff Elanco in animal health. I asked our…