Jim Cramer on Eli Lilly Stock: “It Just Got Pole-Axed, Laid to Waste”

Eli Lilly and Company (NYSE:LLY) is one of the stocks Jim Cramer commented on. Cramer highlighted the reasons behind the stock’s decline recently. He remarked:

“Last and least, I look at the drug stocks and I can’t believe how awful they really are, with now Eli Lilly last joining the ugly fray with its less than impactful, less thought weight loss, the pill. The Street was hoping that Lilly would be able to replace its onerous GLP-1 injection with a simple pill that would produce an equal amount of weight loss. No such luck. The stock, it just got pole-axed, laid to waste.”

Pixabay/Public Domain

Eli Lilly and Company (NYSE:LLY) develops and markets pharmaceuticals for diabetes, obesity, cancer, autoimmune conditions, neurological disorders, and other diseases. The company’s portfolio includes treatments across multiple therapeutic areas. In a July episode, Cramer mentioned the company and said:

“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.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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