Why Eli Lilly and Company (LLY) Is the Best Drug Stock to Buy Now

Eli Lilly and Company (LLY) has consistently demonstrated strong performance and growth potential, making it an attractive investment opportunity in the pharmaceutical industry. With a robust pipeline of innovative products and a strategic focus on difficult-to-treat diseases and immunization, Eli Lilly is well-positioned to continue its success in the coming years. Here are several reasons why Eli Lilly is the best drug stock to buy now:

1. Strong Pipeline and Approvals:
Eli Lilly has a diverse pipeline of 78 clinical-stage projects, with 33 in phase 3 or submitted for regulatory approval. This includes new molecular entities, existing products with potential new indications, and different formulations. Some of the most promising projects include:
- SAR444336 (Non-beta IL2 Synthorin™) and SAR445399 (IL1R3 mAb) for inflammatory indications
- SAR445611 (CX3CR1 Nanobody® VHH) and SAR446422 (CD28/OX40 bispecific Ab) for inflammatory indications
- amlitimab (OX40L mAb) for systemic sclerosis, alopecia areata, hidradenitis suppurativa, and asthma
- Dupixent® (IL4/IL13 mAb) for ulcerative colitis
- duvakitug (TL1A mAb) for Crohn's disease and ulcerative colitis
- eclitasertib (RIPK1 inhibitor) for ulcerative colitis
- frexalimab (CD40L mAb) for type 1 diabetes and systemic lupus erythematosus
- itepekimab (IL33 mAb) for bronchiectasis
- lunsekimg (IL13/TSLP Nanobody® VHH) for asthma
- riliprubart (C1s inhibitor) for antibody-mediated rejection
- rilzabrutinib (BTK inhibitor) for chronic spontaneous urticaria, asthma, and IgG4-related disease
- SAR441566 (Oral TNFR1 signaling inhibitor) for rheumatoid arthritis and psoriasis
- SAR442970 (TNFa/OX40L Nanobody® VHH) for hidradenitis suppurativa
- SAR444656 (IRAK4 degrader) for hidradenitis suppurativa and atopic dermatitis

2. Robust Revenue Growth and Market Expansion:
Eli Lilly's revenue has grown significantly in recent years, driven by the success of its innovative products and strategic acquisitions. In 2024, the company's revenue increased by 32.76% compared to the previous year, reaching $59.80 billion. This growth is expected to continue in 2025, with analysts projecting a consensus target of $1009, suggesting potential gains of 25% from current support levels.
Eli Lilly's focus on operational quality, expansion into new markets, and strategic acquisitions has further supported the company's growth potential. The company's non-incretin portfolio, which includes Mounjaro and Zepbound, grew by 17% in 2024, contributing to the company's strong revenue growth.

3. Strategic Acquisitions and Partnerships:
Eli Lilly has made strategic acquisitions and partnerships to expand its product pipeline and enter new markets. Some notable examples include:
- The acquisition of Scorpion Therapeutics, a biotech company specializing in cancer treatments, for approximately $1 billion, with an additional $1.5 billion that could be paid later if Scorpion achieves specific research milestones.
- A strategic collaboration with AdvanCell to advance novel targeted alpha therapies for cancer, combining Eli Lilly's expertise in drug development and commercialization with AdvanCell's radiopharmaceutical technology.
- An investment in Orbis Medicine's €90 million Series A funding round, exploring methods to deliver peptide drugs like Mounjaro and Zepbound orally in a pill form.

4. Positive Analyst Ratings and Forecasts:
Analysts have a positive outlook on Eli Lilly's stock, with 21 analysts having a 12-month price target of $976.43, an average target that predicts an increase of 15.65% from the current stock price of $844.27. The average analyst rating for Eli Lilly stock is "Strong Buy," indicating that analysts believe this stock is likely to perform very well in the near future and significantly outperform the market.

In conclusion, Eli Lilly and Company (LLY) is the best drug stock to buy now due to its strong pipeline, robust revenue growth, strategic acquisitions and partnerships, and positive analyst ratings. With a focus on difficult-to-treat diseases and immunization, Eli Lilly is well-positioned to continue its success in the coming years, making it an attractive investment opportunity for those looking to capitalize on the pharmaceutical industry's growth and innovation.