LLY

Eli Lilly manufactures diabetes and obesity drugs, with Mounjaro and Zepbound driving unprecedented demand for their GLP-1 receptor agonists that deliver superior weight loss results versus competitors. The company controls critical manufacturing capacity while Novo Nordisk struggles with supply constraints, creating a rare oligopoly dynamic in a $100 billion addressable market expanding beyond diabetes into broader metabolic health. Alzheimer's drug Donanemab just received FDA approval in July 2024, opening a second major growth vector after decades of failed attempts across the industry. Revenue surged 42.6% last quarter while forward PE compressed to 22x despite the stock trading near all-time highs, reflecting Wall Street's recognition that GLP-1 tailwinds have years left to run. Management raised full-year guidance three times in 2024, with Mounjaro alone generating over $3 billion in quarterly sales by Q3.