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Here's How Much a $1000 Investment in Eli Lilly Made 10 Years Ago Would Be Worth Today

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Eli Lilly (LLY) ten years ago? It may not have been easy to hold on to LLY for all that time, but if you did, how much would your investment be worth today?

Eli Lilly's Business In-Depth

With that in mind, let's take a look at Eli Lilly's main business drivers.

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Indianapolis, IN based Eli Lilly and Company, one of the world’s largest pharmaceutical companies, boasts a diversified product profile including a solid lineup of new successful drugs. It also has a dependable pipeline as it navigates through challenges like patent expirations of several drugs and rising pricing pressure on its U.S. diabetes franchise.

Its pharmaceutical product categories are neuroscience (Cymbalta, Emgality and others), diabetes (Mounjaro, Zepbound, Trulicity and others), oncology (Alimta, Cyramza, Verzenio and others), immunology (Taltz and Olumiant and others) and others (Cialis and others).

Over the past few years, Lilly has been actively seeking acquisitions and in-licensing deals to boost its product portfolio and pipeline. The $6.5 billion purchase of ImClone Systems in November 2008 brought with it blockbuster cancer compound, Erbitux. Its other key acquisitions include Hypnion, Inc. (a neuroscience drug discovery company focused on sleep disorders), CoLucid Pharmaceuticals (which added Reyvow for acute migraine), Loxo Oncology (added cancer drugs Retevmo and Jaypirca), Dermira (added atopic dermatitis drug Ebglyss/lebrikizumab), Akouos (expanded efforts in genetic medicines) and DICE Therapeutics (strengthened immunology pipeline).

Lilly has collaboration agreements with several companies, including Incyte (Olumiant), Boehringer Ingelheim (diabetes) and Roche (Ebglyss) among others.
    
Lilly divested its Elanco animal health unit as an independent publicly traded company - Elanco Animal Health Incorporated - via an initial public offering (IPO) of a minority stake in 2018. Elanco Animal Health started trading with the ticker symbol ELAN on NYSE from Sep 20. Lilly divested the remaining 80.2% stake in the new company through a “tax-efficient transaction” in March 2019.

Lilly’s 2023 revenues increased 20% to $34.1 billion. Among the key drugs, Trulicity accounted for around 20.9% of Lilly’s 2023 revenues, Mounjaro accounted for 15.1%, Verzenio 11.3%, and Taltz and Jardiance accounted for around 8.1% each of the total revenues.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Eli Lilly a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in June 2014 would be worth $14,283.25, or a gain of 1,328.33%, as of June 21, 2024, and this return excludes dividends but includes price increases.

The S&P 500 rose 178.84% and the price of gold increased 72.46% over the same time frame in comparison.

Looking ahead, analysts are expecting more upside for LLY.

Lilly boasts a solid portfolio of core drugs for diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Mounjaro, Verzenio, Jardiance, Taltz and others. Its new tirzepatide medicines, diabetes drug Mounjaro and obesity medicine, Zepbound, are seeing exceptionally strong demand trends. Lilly has also launched some other new products like Omvoh and Jaypirca. Mounjaro, Zepbound and other new products are expected to drive Lilly’s top line in 2024. Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s. However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products like Zepbound and Mounjaro are some top-line headwinds. The stock has outperformed the industry so far this year.

The stock is up 9.59% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2024. The consensus estimate has moved up as well.

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