Investors have always known that Eli Lilly and Co (NYSE:LLY) has a strong pipeline, but the community didn’t know the exact number of potential product launches until now. According to a presentation to the investment community that Eli Lilly will make today, the company predicts that it has the potential to launch 20 new products over a ten-year span that began in 2014. Moreover, Eli Lilly believes that it could launch an average of two line extensions or new indications per year for its portfolio of already-approved products during the same time period. Eli Lilly will mainly focus its research and development efforts on five therapeutic areas including four core areas—diabetes, oncology, immunology and neurodegeneration—and one growth area—pain. Anlaysts are pretty bullish on Eli Lilly and Co (NYSE:LLY)’s pipeline and predict the company will grow its earnings per share by an average of 12.44% a year for the next five years. Eli Lilly shares are up by 1.26% today.
Eli Lilly & Co. (NYSE:LLY) was in 57 hedge funds’ portfolios at the end of March. LLY has experienced an increase in hedge fund interest lately. There were 54 hedge funds in our database with LLY positions at the end of the previous quarter. At the end of this article we will also compare LLY to other stocks including Ambev SA (ADR) (NYSE:ABEV), Celgene Corporation (NASDAQ:CELG), and China Petroleum & Chemical Corp (ADR) (NYSE:SNP) to get a better sense of its popularity.
We track prominent investors and hedge funds because our research has shown that historically their stock picks delivered superior risk-adjusted returns. This is especially true in the small-cap space. The 15 most popular small-cap stocks among a select group of investors delivered a monthly alpha of 80 basis points between 1999 and 2012 (see the details here).
Of the funds tracked by Insider Monkey, Andreas Halvorsen’s Viking Global has the number one position in Eli Lilly & Co. (NYSE:LLY), worth close to $847.1 million, accounting for 3.7% of its total 13F portfolio. Sitting at the No. 2 spot is D. E. Shaw of D E Shaw, with a $304.3 million position; 0.5% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Hal Mintz’s Sabby Capital, Samuel Isaly’s OrbiMed Advisors, and Jim Simons’ Renaissance Technologies.
On the next page we’ll look at some funds that took up positions in Eli Lilly during Q1, as well as compare the stock to a handful of others with similar market caps.