Cramer's Preference: Eli Lilly Over Viking Therapeutics

As a long-time investor and host of Mad Money, Jim Cramer has shared his insights on various stocks, including his preference for Eli Lilly (LLY) over Viking Therapeutics. In this article, we'll explore the reasons behind Cramer's preference and compare the two companies based on their financial projections, market potential, and manufacturing capabilities.



First, let's consider the financial projections and market potential of Eli Lilly's key drugs, such as Mounjaro and Zepbound, compared to Viking Therapeutics' pipeline.

1. Mounjaro (Tirzepatide):
- Eli Lilly: Mounjaro is a dual GLP-1 and GIP receptor agonist approved for type 2 diabetes and is expected to launch in obesity as early as the end of 2023. Lilly expects strong revenue growth driven by Mounjaro and other key growth products, with 2023 revenue expected to be between $30.3 billion and $30.8 billion. (Source: Lilly's 2023 financial guidance, Dec. 13, 2022)
- Viking Therapeutics: Viking's lead product candidate, VK2809, is a novel, selective thyroid hormone receptor beta agonist for the treatment of non-alcoholic fatty liver disease (NAFLD). While Viking has shown promising Phase 2b results, the market potential and financial projections for VK2809 are not as clear or substantial as those for Mounjaro.

2. Zepbound (Semaglutide):
- Eli Lilly: Zepbound is a once-weekly GLP-1 receptor agonist approved for chronic weight management in adults with obesity or overweight with at least one weight-related condition. Lilly expects Zepbound to contribute to its revenue growth, with the obesity market expected to be highly competitive. (Source: Lilly's 2023 financial guidance, Dec. 13, 2022)
- Viking Therapeutics: Viking does not have a direct competitor to Zepbound in its pipeline. While VK2809 targets a different indication (NAFLD), it is not a GLP-1 receptor agonist like Zepbound.

3. Market potential:
- Eli Lilly: The diabetes-obesity space is expected to exceed $100 billion in revenues by 2030, with Lilly and Novo Nordisk being the key players. Lilly has locked up manufacturing capacity for the next several years, creating a barrier to entry for competitors. (Source: Jim Cramer's comments, Feb. 4, 2025)
- Viking Therapeutics: The NAFLD market is smaller and less established compared to the diabetes-obesity market. While Viking has shown promising results with VK2809, the market potential and competition are not as clear or substantial as those for Lilly's key drugs.



Now, let's discuss the role of Eli Lilly's established manufacturing capacity and market presence in Cramer's preference, and how this compares to Viking Therapeutics' capabilities.

Jim Cramer has emphasized the importance of manufacturing capacity as a key barrier to entry, stating that Lilly and Novo Nordisk have locked up capacity for the next several years. This established infrastructure and resources allow Eli Lilly to maintain a strong position in the market and continue its growth trajectory.

In contrast, Viking Therapeutics is a smaller, less established company that may not have the same level of manufacturing capacity or market presence as Eli Lilly. While Viking Therapeutics may have promising products in development, such as VK2809 for non-alcoholic steatohepatitis (NASH), its ability to bring these products to market and compete with larger, more established companies like Eli Lilly may be limited by its manufacturing capabilities and market presence.

In conclusion, Jim Cramer's preference for Eli Lilly over Viking Therapeutics is likely influenced by the established manufacturing capacity and market presence of Eli Lilly, which provide a strong foundation for the company's continued success and growth. While Viking Therapeutics may have potential, its smaller size and less established infrastructure may make it a riskier investment compared to Eli Lilly.