Billionaire Israel Englander Boosts Eli Lilly Stake: Join Him or Stay on the Sidelines?

Billionaire investor Israel Englander, known for his shrewd market insights, recently increased his stake in Eli Lilly (LLY) during the third quarter. This move begs the question: Should investors follow his lead and consider Eli Lilly as a potential addition to their portfolios? This article explores Englander's investment strategy, Eli Lilly's recent performance, and the company's long-term growth prospects.

Israel Englander, founder of Millennium Management, is renowned for his value-oriented investment approach. His recent stake increase in Eli Lilly reflects his confidence in the company's future prospects. Eli Lilly's strong financial performance and promising pipeline have likely caught Englander's attention.

Eli Lilly reported robust Q3 2024 results, with total revenue surging 42% after excluding divestiture activity. This growth was driven by volume growth from Mounjaro and Zepbound, and non-incretin revenue climbed 17%. EPS increased to $1.18 on a non-GAAP basis, inclusive of $3.08 of acquired IPR&D charges. The company also updated its 2024 revenue guidance range to $45.4 to $46.0 billion and non-GAAP EPS guidance to the range of $13.02 to $13.52.



Eli Lilly's recent product pipeline and regulatory approvals have also contributed to Englander's bullish stance. The company secured FDA approvals for Ebglyss for moderate-to-severe atopic dermatitis and Kisunla for early symptomatic Alzheimer's disease. Positive Phase 3 data for tirzepatide, donanemab, imlunestrant, and lebrikizumab further bolster Eli Lilly's pipeline.



Englander's investment strategy aligns with Eli Lilly's long-term growth prospects. The company's strong financial performance, promising pipeline, and strategic acquisitions, such as Morphic Holding, indicate a positive outlook. However, investors should consider the potential impacts of recent earnings guidance updates and the broader market's perception of the company.



In conclusion, Israel Englander's increased stake in Eli Lilly signals confidence in the company's long-term growth prospects. Eli Lilly's strong financial performance, promising pipeline, and strategic acquisitions make a compelling case for investors to consider following Englander's lead. However, investors should conduct thorough due diligence and consider their individual risk tolerance and investment goals before making any decisions.