Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

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7. Eli Lilly and Company (NYSE:LLY)

Growth Investment Ratio: 194%

Number of Hedge Fund Holders: 100

Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical giant that has been at the center of industry and Wall Street euphoria surrounding weight loss drugs. These have pushed its stock to new heights, with the shares up 370% since 2021 start. Eli Lilly and Company (NYSE:LLY) has benefitted from its tight focus on the obesity, weight loss, and cancer segments of the pharmaceutical industry. These are among some of the fastest-growing areas in the sector. Yet, Eli Lilly and Company (NYSE:LLY)’s massive success with its weight loss drugs has also created a conundrum for the firm. With the first weight-loss drug patents set to expire soon, the firm might have to compete with low-cost generics soon. This will force it to stay on its toes and potentially reduce prices to stay competitive. The increased competition also increases the pressure on Eli Lilly and Company (NYSE:LLY) to introduce new drugs. Investor jitters surrounding competition were clear in August when the shares dropped by 19% after Roche and Viking presented favorable alternatives. Eli Lilly and Company (NYSE:LLY) is currently developing Orfoglipron, which will be easier to produce and lower manufacturing costs.

Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q2 2024 investor letter. Here is what the fund said:

“In biopharmaceuticals, we remain bullish on the market opportunity for new diabetes and obesity medicines. In June at a medical meeting, the principal investigators of the SURMOUNT-OSA trial presented the full data which demonstrated that Eli Lilly and Company’s Tirzepatide reduced obstructive sleep apnea in adults with obesity by up to 62.8%, and up to 51.5% of participants met the criteria for disease resolution. This impressive data set paves the way for Tirzepatide to be used as a treatment for obstructive sleep apnea in overweight and obese individuals.”

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