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If You Invested $1000 in Eli Lilly 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Eli Lilly (LLY - Free Report) 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 Retevmo for RET-altered lung and thyroid cancers) and Dermira (added atopic dermatitis candidate, lebrikizumab).
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 2021 revenues increased 15% to $28.3 billion. Among the key drugs, Trulicity accounted for around 23% of Lilly’s 2021 revenues, Humalog accounted for around 10.5%, Alimta accounted for 7.3% and Taltz accounted for 7.8% of the total revenues. Lilly’s COVID-19 antibodies accounted for around 8% of its total revenues in 2021.
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.
According to our calculations, a $1000 investment made in April 2012 would be worth $7,225.54, or a gain of 622.55%, as of April 6, 2022, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 223.67% and the price of gold went up 13.22% over the same time frame.
Looking ahead, analysts are expecting more upside for LLY.
Lilly boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Lilly’s 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. It has an exciting pipeline of potential new medicines including tirzepatide for type II diabetes and donanemab for early Alzheimer's disease. Both candidates have multibillion dollar sales potential. However, 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 some top-line headwinds. The stock has underperformed the industry this year so far.
Shares have gained 12.53% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Eli Lilly 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Eli Lilly (LLY - Free Report) 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 Retevmo for RET-altered lung and thyroid cancers) and Dermira (added atopic dermatitis candidate, lebrikizumab).
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 2021 revenues increased 15% to $28.3 billion. Among the key drugs, Trulicity accounted for around 23% of Lilly’s 2021 revenues, Humalog accounted for around 10.5%, Alimta accounted for 7.3% and Taltz accounted for 7.8% of the total revenues. Lilly’s COVID-19 antibodies accounted for around 8% of its total revenues in 2021.
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.
According to our calculations, a $1000 investment made in April 2012 would be worth $7,225.54, or a gain of 622.55%, as of April 6, 2022, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 223.67% and the price of gold went up 13.22% over the same time frame.
Looking ahead, analysts are expecting more upside for LLY.
Lilly boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Lilly’s 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. It has an exciting pipeline of potential new medicines including tirzepatide for type II diabetes and donanemab for early Alzheimer's disease. Both candidates have multibillion dollar sales potential. However, 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 some top-line headwinds. The stock has underperformed the industry this year so far.
Shares have gained 12.53% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.