The pharmaceutical industry is known for its volatility, making it a tricky investment for many. One prime example is Pfizer (NYSE: PFE), which saw its stock price soar from around $33 in February 2020 to nearly $60 by December of the same year, thanks to its rapid production and approval of a COVID-19 vaccine. However, as demand for the vaccine waned, the stock price took a hit and has been relatively stagnant since early 2024, currently sitting at around $28, lower than its pre-COVID price.
Investing in pharmaceutical stocks for the long term, especially 10 years or more, requires careful consideration. Companies that continuously innovate and fill their pipelines with potential blockbuster drugs are the ones to watch. Eli Lilly (NYSE: LLY) is a prime example of a company that has been proactive in this regard. It has established itself as a leader in the GLP-1 drug category, known for effectively lowering blood sugar levels and promoting weight loss.
Recently, Lilly made headlines with its $2.4 billion acquisition of Orna Therapeutics, a company focused on developing innovative drugs that manipulate a patient’s genes and cells to fight diseases within the body. Additionally, Lilly has entered into collaborations with other biotechnology companies to develop treatments for immune disorders, cancer, and hearing loss gene therapies. This forward-thinking approach is what sets Lilly apart and could potentially drive its stock price higher in the long term.
Before considering investing in Eli Lilly, it’s essential to do thorough research. While Lilly may not have made the list of the 10 best stocks recommended by the Motley Fool Stock Advisor analyst team, it’s crucial to consider the potential for future growth and returns. Looking back at past recommendations, stocks like Netflix and Nvidia have delivered significant returns for investors who got in early. With the right strategy and a long-term outlook, pharmaceutical stocks like Eli Lilly could prove to be lucrative investments for those willing to take the risk.
