10 Innovative Healthcare Stocks to Watch in 2025

2. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 115

Eli Lilly and Company (NYSE:LLY), a global pharmaceutical company based in Indianapolis, develops and markets medications across the US, Europe, Japan, China, and other regions. The company said on February 26 that it would invest at least $27 billion to construct four new manufacturing facilities in the US to meet the increasing demand for its diabetes and weight loss medications and to further the development of new drugs.

Eli Lilly and Company (NYSE:LLY) had a great year in 2024, exceeding its initial projection by $4 billion and seeing a 32% increase in annual revenue over the previous year. Revenue increased by 45% in just the fourth quarter due to the success of recently released items, which brought in over $3.1 billion. Mounjaro and Zepbound were particularly well-liked. Along with strong growth in immunology, neuroscience, and oncology, the business also witnessed a 20% gain in revenue from its non-incretin portfolio. A positive product mix helped the gross margin increase to 83.2% in the fourth quarter. Investments in early and late-stage initiatives resulted in an 18% increase in research and development costs. Due to its robust sales of new items, operating income more than doubled to $5.6 billion.

Eli Lilly and Company (NYSE:LLY) declared on February 28 that Jaypirca (pirtobrutinib), a reversible Bruton’s tyrosine kinase (BTK) inhibitor, has been recommended for approval by the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use. Adults with relapsed or refractory chronic lymphocytic leukemia who have already taken a BTK inhibitor are the target population for this treatment. The recommendation is currently awaiting the final evaluation by the European Commission, which may be a major impetus for the company if it is approved.