Jim Cramer on Eli Lilly: “It Needs Breakthroughs in New Areas”

Eli Lilly and Company (NYSE:LLY) is one of the stocks that Jim Cramer shed light on. While Cramer still backed the company, he did express uncertainty about its future as he stated:

“What I’m thinking, as someone who owns Eli Lilly for the Charitable Trust and who wishes I owned PepsiCo, is that there might be a short-term peak in the use of these drugs (GLP-1s). The Achilles heel of these drugs is that they’re too effective. At some point, you lose enough weight, and you might think you can stop taking them… Whatever the case, if Eli Lilly is going to break out from this level, it needs breakthroughs in new areas, heart, brain, that it just doesn’t have right now, or there has to be some new data that shows something else positive that the GLP-1 drugs can do.

And of course, it’s got to start coming in pill form because people are tired of taking needles. I still like the stock of Eli Lilly. We have a huge gain in this one for the Charitable Trust. We’re going to hang on to it for now. But PepsiCo’s breakout, a lack of Lilly’s breakthroughs, and a reminder that at one point we were thinking of buying the airlines because of these GLP-1 drugs means that I no longer feel as certain about Lilly’s future without science that says these drugs do a lot more than just control diabetes and make you lose some weight.”

Photo by Myriam Zilles on Unsplash

Eli Lilly (NYSE:LLY) is engaged in the research, development, and sale of pharmaceutical products, including therapies for diabetes, cancer, autoimmune disorders, pain, and migraines.

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Disclosure: None. This article is originally published at Insider Monkey.