From Nasdaq: 2025-01-14 09:00:00

Eli Lilly & Co. (NYSE: LLY) dominates the GLP-1 market with Tirzepatide, sold as Mounjaro, and Zepbound for type 2 diabetes and obesity. The company boasts a robust pipeline, including Alzheimer’s treatment Donanemab, Crohn’s disease drug Mirikizumab, and asthma treatment Lebrikizumab. Lilly’s stock fell 17.75% after hitting an all-time high in 2024, presenting a potential buying opportunity with a $15 billion stock buyback.

Lilly missed Q3 earnings estimates due to a $2.83 billion IPR&D charge for acquiring Morphic. Excluding this charge, revenue surged 42% YoY, driven by a 36% YoY volume increase. The company’s GLP-1 drugs continue to outperform, with Tirzepatide gaining approvals for various indications, including obesity and obstructive sleep apnea. Supply shortages limited revenue growth for Zepbound, launched in the US in November 2023.

Lilly is gearing up to launch Retatrutide, a next-gen GLP-1 blockbuster targeting GIP, GLP-1, and Glucagon receptors. Initial studies show impressive weight reduction results, positioning Retatrutide as a potential game-changer in obesity treatment. Longer phase 3 trials will provide a more comprehensive evaluation of its efficacy and safety profile.

LLY stock is showing a promising breakout pattern with a symmetrical triangle formation. A breakout above the upper trendline resistance at $907.98 could signal further upside potential, supported by daily RSI momentum and Fib pullback levels. Bullish investors can consider options strategies like cash-secured puts and covered calls to capitalize on potential upside movements and generate income.



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