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 important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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.
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 (Zyprexa, Cymbalta, Emgality), diabetes (Humalog, Humulin, Trulicity and others), oncology (Alimta, Cyramza, Verzenio), immunology (Taltz and Olumiant) and others (Cialis).
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. The January 2007 acquisition of ICOS Corporation gave Lilly full control over erectile dysfunction drug, Cialis. Its other acquisitions include Hypnion, Inc. (a neuroscience drug discovery company focused on sleep disorders), CoLucid Pharmaceuticals (which added Reyvow [lasmiditan] for acute migraine), Loxo Oncology (added cancer drugs Retevmo and Jaypirca), Dermira (added atopic dermatitis candidate, lebrikizumab) and Akouos (expanded efforts in genetic medicines).
Lilly has collaboration agreements with several companies including Incyte (Olumiant), Boehringer Ingelheim (diabetes) and Innovent Biologics (Tyvyt in China) 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 2022 revenues increased 1% to $28.5 billion. Among the key drugs, Trulicity accounted for around 26% of Lilly’s 2022 revenues. Verzenio and Taltz, each accounted for around 8.7%. Jardiance and Humalog accounted for 7.2% each of the total revenues. Lilly’s COVID-19 antibodies accounted for around 7% of its total revenues in 2022.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Eli Lilly ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in April 2013 would be worth $6,520.72, or a gain of 552.07%, as of April 7, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 164.28% and the price of gold increased 22.04% over the same time frame in comparison.
Going forward, analysts are expecting more upside for LLY.
Lilly boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others. It is regularly adding promising new pipeline assets through business development deals. Lilly expects to launch four new medicines by 2023 end with Mounjaro for type II diabetes already launched and cancer drug Jaypirca already approved. Mounjaro is off to a solid start. However, the CRL for donanemab will probably delay the potential launch of the candidate by several months. Generic competition for several drugs, rising pricing pressure in the United States mainly on key drug, Trulicity, and price cuts in some international markets like China, Japan and Europe are a few top-line headwinds. The stock has outperformed the industry in the past one year.
The stock is up 16.24% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Eli Lilly and Company (LLY) : Free Stock Analysis Report
