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With a market cap of $694.9 billion, Eli Lilly and Company (LLY) is a leading global pharmaceutical company headquartered in Indianapolis, Indiana. Founded in 1876, it is renowned for developing innovative medicines in areas such as diabetes, oncology, immunology, neuroscience, and obesity management.
Companies valued over $200 billion are generally described as “mega-cap” stocks, and Eli Lilly fits right into that category. The company has a strong research and development focus, investing heavily in next-generation biologics, oncology therapies, and treatments for neurodegenerative diseases such as Alzheimer’s. It is also expanding in immunology and rare diseases through acquisitions and strategic collaborations.
However, the pharma giant has declined 24.5% from its 52-week high of $969.65 on Sept. 3. Over the past three months, its shares have dipped 1.8%, lagging behind the Health Care Select Sector SPDR Fund's (XLV) 3.8% rise over the same time frame.
Longer term, the pharmaceutical giant is down 5.2% on a YTD basis, lagging behind XLV’s marginal decrease. Moreover, shares of Eli Lilly have declined nearly 22.9% over the past 52 weeks, compared to XLV’s 12.4% dip over the same time frame.
LLY has been in a bearish trend, trading mostly below its 50-day and 200-day moving averages since the end of May.
On Aug. 1, Eli Lilly’s stock gained over 2% after The Washington Post reported that the U.S. government plans to launch a five-year pilot program enabling Medicare and Medicaid coverage for costly GLP-1 weight-loss drugs, including Mounjaro and Zepbound. The program, led by the CMS Innovation Center, is set to begin in April 2026 for Medicaid and January 2027 for Medicare.
Furthermore, LLY has lagged behind its rival, Johnson & Johnson (JNJ), which experienced a 21.3% YTD gain and a 7% rise over the past 52 weeks.
Nevertheless, the stock has a consensus rating of “Strong Buy” from 27 analysts in coverage, and the mean price target of $906.50 represents a 23.8% premium to the current market prices.
