Over 60% of Eli Lilly's Revenue Comes From Its GLP-1 Drugs. Should Investors Be Worried?

Eli Lilly (NYSE: LLY) has been a maturation beast implicit the years, there's nary denying that. And a large crushed for its unthinkable show has been owed to its approved GLP-1 drugs -- Mounjaro (approved for diabetes) and Zepbound (approved for value loss). These products person been generating billions successful gross for the company, and yet, they inactive person overmuch much maturation connected the horizon.

At the aforesaid time, it could beryllium a concerning contented for investors due to the fact that truthful overmuch of the company's gross and maturation prospects are tied up successful conscionable a mates of cardinal assets. And with contention successful the GLP-1 marketplace intensifying, that could marque the banal vulnerable, particularly fixed the precocious premium it trades astatine today. Should investors beryllium disquieted astir Eli Lilly stock, and is present a clip to merchantability it, oregon tin it inactive beryllium a bully bargain astatine its existent levels?

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

Last week, Eli Lilly posted its fourth-quarter results for 2025, and its maturation remained impressive. Revenue for the past 3 months of the twelvemonth totaled $19.3 billion, which was a 43% summation from the aforesaid play a twelvemonth ago. Mounjaro grew by 110% and totaled $7.4 cardinal successful sales, portion Zepbound grew astatine a faster complaint of 123% and its income topped astir $4.3 billion. Zepbound is the newer of the 2 drugs, and thus, its income person been lighter, but its maturation complaint has been faster. It could extremity up being the company's top-selling cause successful the not-too-distant future.

Together, the drugs brought successful $11.7 cardinal successful sales, making up much than 60% of the company's apical line. It's an awesome feat, but it calls into question whether excessively overmuch hinges connected these products, particularly arsenic different healthcare companies walk billions connected coming up with imaginable rival products successful the future, which could instrumentality marketplace stock from Eli Lilly.

Eli Lilly has a marketplace headdress of astir $950 billion, making it the astir invaluable healthcare banal successful the world. Not lone has it been doing well, but investors person been paying a large premium for it arsenic its price-to-earnings aggregate of 46 is reasonably high. That precocious of a terms tag implies that investors are expecting overmuch much maturation from the concern successful the years to come.

There is immoderate hazard with Eli Lilly, but fixed that it's already go an aboriginal person successful a blistery GLP-1 market, I deliberation a premium valuation is warranted. The banal whitethorn beryllium susceptible to a diminution successful the abbreviated word if different competing GLP-1 products travel to market. But if you're consenting to bent connected for the agelong term, I deliberation this tin inactive beryllium an exceptional maturation banal to clasp successful your portfolio.