Eli Lilly's Q3 Earnings: Soaring High or Just Another Overhyped Pharma Pump?
Alright, let's get this straight. Eli Lilly, huh? They're popping champagne corks over at HQ after a Q3 that looks like it was ripped straight from a fantasy novel. 54% revenue jump? Adjusted EPS up almost 500%? Give me a break.
The GLP-1 Gold Rush
Look, I'm no genius, but it doesn't take a rocket scientist to see what's fueling this rocket. It's all about those GLP-1 drugs, Zepbound and Mounjaro. Zepbound prescriptions tripled, Mounjaro dominating the diabetes market… they're practically printing money. And don't even get me started on the weight loss craze. People are so desperate to shed a few pounds they'll throw their wallets at anything that promises results.
I mean, 75% of Mounjaro's sales outside the US are folks paying out of pocket because insurance companies aren't covering weight loss? That's insane! It’s like selling bottled air at a premium to people who think it cures aging. Are we really this gullible?
And the analysts are eating it up, of course. Lilly's stock is up almost 20% this year, outpacing the S&P 500. They're trading at 29 times forward earnings. Are you kidding me? That's dot-com bubble territory. 2 Reasons I'm Keeping My Eye on Eli Lilly Stock Right Now - The Motley Fool
The Pipeline Hype Machine
But wait, there's more! Lilly's got a pipeline bursting with new drugs, or so they say. Orforglipron, retatrutide… these names sound like something out of a sci-fi movie. Phase 3 trials completed, FDA approvals pending, potential U.S. launch in 2026. It’s the same old song and dance.
They're dangling the carrot of future profits to keep investors hooked. "Oh, just wait until next year! We've got even more miracle drugs coming!" Meanwhile, the stock price keeps climbing, and the executives keep cashing in.
And offcourse, let's not forget the Inluriyo approval for breast cancer and Kisunla for Alzheimer's. Good news, sure, but it feels like they're throwing everything at the wall to see what sticks. Are these genuinely groundbreaking treatments, or just another way to pad the bottom line? I'm not saying they aren't important, but the timing feels… convenient.
Then again, maybe I'm the crazy one here. Maybe I'm just a cynical old grump who can't see the forest for the trees. But I've seen this movie before, and it usually ends with a crash.
The Big Picture: Who Really Wins?
So, let's be real. Who's really benefiting from all this? The patients who can afford these expensive drugs? The doctors who are prescribing them? Or the shareholders who are getting rich off the hype? I'm betting it's the latter.
Look, I'm not saying Lilly's drugs don't work. They probably do, to some extent. But the whole thing feels… off. It feels like we're prioritizing profits over people, and that's never a good look.
So, What's the Real Cost?
This ain't about healthcare; it's about wealthcare. The rich get richer, and the rest of us are left holding the bag when the bubble bursts. I'm not saying Eli Lilly is evil, but they're certainly playing the game, and playing it well. And in this game, there are always losers.