We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ETFs in Focus on Eli Lilly's Solid Q2 Earnings, Weak Obesity Data
Read MoreHide Full Article
Eli Lilly and Company (LLY - Free Report) reported robust second-quarter 2025 results, wherein it beat estimates on both the top and bottom lines, driven by strong demand for its blockbuster weight loss and diabetes drugs. The drugmaker also raised its fiscal year outlook.
However, shares of LLY tumbled 14% on disappointing weight-loss pill data, which overshadowed the company’s strong second-quarter performance and upgraded full-year outlook. Investors seeking to buy the dip could bet on ETFs having the largest exposure to the drugmaker. These include iShares U.S. Pharmaceuticals ETF (IHE - Free Report) , VanEck Vectors Pharmaceutical ETF (PPH - Free Report) , Horizon Kinetics Medical ETF (MEDX - Free Report) , Roundhill GLP-1 & Weight Loss ETF (OZEM - Free Report) and Harbor Health Care ETF (MEDI - Free Report) .
Earnings in Focus
Earnings per share came in at $6.31, surpassing the Zacks Consensus Estimate of $5.61 and improving 61% from the year-ago number. Revenues rose 38% to $15.56 billion and edged past the estimated $14.75 billion. The year-over-year sales growth was driven by robust sales of Zepbound and Mounjaro (see: all the Healthcare ETFs here).
Diabetes drug Mounjaro's sales skyrocketed 68% to $5.2 billion, while breast cancer treatment Verzenio sales soared 12% year over year to $1.5 billion. Weight-loss drug Zepbound raked in about $1.24 billion in sales, up 172% year over year.
The pharmaceutical giant increased its full-year outlook. It raised the revenue guidance to $62 billion from $58-$61 billion and the adjusted earnings per share guidance to $21.75-$23.00 from $20.78-$22.28.
Clinical Trial Results
The late-stage trial data on the experimental obesity pill, orforglipron, revealed that the patients on the highest dose (36 milligram dose) of orforglipron lost about 12% of their body weight (around 27.3 pounds) in a 72-week period. By comparison, patients on Novo Nordisk's (NVO - Free Report) injectable Wegovy lost roughly 15% in late-stage trials over a similar period.
The most common side effects were nausea, vomiting and diarrhea, which occurred at rates similar to existing GLP-1 drugs. However, Lilly emphasized that no liver toxicity was observed, a concern with other oral weight-loss candidates.
Bloomberg Intelligence analysts noted the results may cast doubt on Wall Street’s $12 billion annual sales projection for orforglipron by 2030. The pharma giant aims to file for regulatory approval by the end of 2025, with a global launch expected by 2026 (read: Healthcare: Winning Sector ETF Amid Soft U.S. July Jobs Report)
iShares U.S. Pharmaceuticals ETF offers exposure to 36 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Eli Lilly takes the second spot, accounting for a 20.9% share. iShares U.S. Pharmaceuticals ETF has $555.5 million in AUM and charges 38 bps in fees and expenses. Volume is lower as it exchanges about 35,000 shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Eli Lilly occupying the top position at 16.3% of the assets. VanEck Vectors Pharmaceutical ETF has amassed $498.7 million in its asset base and trades in a good volume of about 465,000 shares a day. It charges 36 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
Horizon Kinetics Medical ETF is an actively managed ETF that invests primarily in patented first-line pharmaceuticals and biologics, as these products tend to have high-profit margins and significant barriers to entry. It holds 35 stocks in its basket, with Eli Lilly taking the top spot at 13.3% of the portfolio. Horizon Kinetics Medical ETF has gathered $16.7 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 3000 shares.
Roundhill GLP-1 & Weight Loss ETF is the world’s first GLP-1 ETF and is actively managed. Roundhill believes that weight loss drugs, including GLP-1 agonists, represent one of the most revolutionary advancements in the global pharmaceutical industry. OZEM holds 23 stocks in its basket, with LLY occupying the top position at 14.29% share. Roundhill GLP-1 & Weight Loss ETF has accumulated $31.6 million in its asset base and charges 59 bps in annual fees. It trades in an average daily volume of 20,00 shares.
Harbor Health Care ETF is actively managed by Westfield Capital and primarily invests in the securities of companies principally engaged in the research, development, production or distribution of products and services related to the healthcare industry. MEDI has a concentrated portfolio of 37 companies that Westfield believes are best positioned to benefit from the secular growth and innovation within the U.S. healthcare system, with long-term alpha potential. Eli Lilly occupies the second position with a 14.5% share. Harbor Health Care ETF has accumulated $16.6 million in its asset base while trading in an average daily volume of 2000 shares. It charges 80 bps in annual fees.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs in Focus on Eli Lilly's Solid Q2 Earnings, Weak Obesity Data
Eli Lilly and Company (LLY - Free Report) reported robust second-quarter 2025 results, wherein it beat estimates on both the top and bottom lines, driven by strong demand for its blockbuster weight loss and diabetes drugs. The drugmaker also raised its fiscal year outlook.
However, shares of LLY tumbled 14% on disappointing weight-loss pill data, which overshadowed the company’s strong second-quarter performance and upgraded full-year outlook. Investors seeking to buy the dip could bet on ETFs having the largest exposure to the drugmaker. These include iShares U.S. Pharmaceuticals ETF (IHE - Free Report) , VanEck Vectors Pharmaceutical ETF (PPH - Free Report) , Horizon Kinetics Medical ETF (MEDX - Free Report) , Roundhill GLP-1 & Weight Loss ETF (OZEM - Free Report) and Harbor Health Care ETF (MEDI - Free Report) .
Earnings in Focus
Earnings per share came in at $6.31, surpassing the Zacks Consensus Estimate of $5.61 and improving 61% from the year-ago number. Revenues rose 38% to $15.56 billion and edged past the estimated $14.75 billion. The year-over-year sales growth was driven by robust sales of Zepbound and Mounjaro (see: all the Healthcare ETFs here).
Diabetes drug Mounjaro's sales skyrocketed 68% to $5.2 billion, while breast cancer treatment Verzenio sales soared 12% year over year to $1.5 billion. Weight-loss drug Zepbound raked in about $1.24 billion in sales, up 172% year over year.
The pharmaceutical giant increased its full-year outlook. It raised the revenue guidance to $62 billion from $58-$61 billion and the adjusted earnings per share guidance to $21.75-$23.00 from $20.78-$22.28.
Clinical Trial Results
The late-stage trial data on the experimental obesity pill, orforglipron, revealed that the patients on the highest dose (36 milligram dose) of orforglipron lost about 12% of their body weight (around 27.3 pounds) in a 72-week period. By comparison, patients on Novo Nordisk's (NVO - Free Report) injectable Wegovy lost roughly 15% in late-stage trials over a similar period.
The most common side effects were nausea, vomiting and diarrhea, which occurred at rates similar to existing GLP-1 drugs. However, Lilly emphasized that no liver toxicity was observed, a concern with other oral weight-loss candidates.
Bloomberg Intelligence analysts noted the results may cast doubt on Wall Street’s $12 billion annual sales projection for orforglipron by 2030. The pharma giant aims to file for regulatory approval by the end of 2025, with a global launch expected by 2026 (read: Healthcare: Winning Sector ETF Amid Soft U.S. July Jobs Report)
ETFs in Focus
iShares U.S. Pharmaceuticals ETF (IHE - Free Report)
iShares U.S. Pharmaceuticals ETF offers exposure to 36 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Eli Lilly takes the second spot, accounting for a 20.9% share. iShares U.S. Pharmaceuticals ETF has $555.5 million in AUM and charges 38 bps in fees and expenses. Volume is lower as it exchanges about 35,000 shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
VanEck Vectors Pharmaceutical ETF (PPH - Free Report)
VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Eli Lilly occupying the top position at 16.3% of the assets. VanEck Vectors Pharmaceutical ETF has amassed $498.7 million in its asset base and trades in a good volume of about 465,000 shares a day. It charges 36 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
Horizon Kinetics Medical ETF (MEDX - Free Report)
Horizon Kinetics Medical ETF is an actively managed ETF that invests primarily in patented first-line pharmaceuticals and biologics, as these products tend to have high-profit margins and significant barriers to entry. It holds 35 stocks in its basket, with Eli Lilly taking the top spot at 13.3% of the portfolio. Horizon Kinetics Medical ETF has gathered $16.7 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 3000 shares.
Roundhill GLP-1 & Weight Loss ETF (OZEM - Free Report)
Roundhill GLP-1 & Weight Loss ETF is the world’s first GLP-1 ETF and is actively managed. Roundhill believes that weight loss drugs, including GLP-1 agonists, represent one of the most revolutionary advancements in the global pharmaceutical industry. OZEM holds 23 stocks in its basket, with LLY occupying the top position at 14.29% share. Roundhill GLP-1 & Weight Loss ETF has accumulated $31.6 million in its asset base and charges 59 bps in annual fees. It trades in an average daily volume of 20,00 shares.
Harbor Health Care ETF (MEDI - Free Report)
Harbor Health Care ETF is actively managed by Westfield Capital and primarily invests in the securities of companies principally engaged in the research, development, production or distribution of products and services related to the healthcare industry. MEDI has a concentrated portfolio of 37 companies that Westfield believes are best positioned to benefit from the secular growth and innovation within the U.S. healthcare system, with long-term alpha potential. Eli Lilly occupies the second position with a 14.5% share. Harbor Health Care ETF has accumulated $16.6 million in its asset base while trading in an average daily volume of 2000 shares. It charges 80 bps in annual fees.