Eli Lilly experienced a 6% increase in price over the last quarter, coinciding with several major developments. The company reported strong financial results, with significant year-over-year earnings growth. Further bolstering its stock was the announcement of successful Phase 2 results for lepodisiran, which reduced lipoprotein(a) levels, a genetic heart disease risk factor. Additionally, the company's expansion in digital healthcare and strategic partnerships, like those with AdvanCell, supported its stock performance amidst a backdrop of market-wide volatility and decline, highlighted by a downward trend in major indices like the S&P 500 and Nasdaq, which significantly underperformed compared to Eli Lilly.

We've discovered 2 possible red flags for Eli Lilly (1 can't be ignored!) that you should be aware of before investing here.

AI is about to change healthcare. These 24 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Over the last five years, Eli Lilly delivered a substantial total return of 517.57%, reflecting strong company performance. This impressive growth surpasses developments in the US pharmaceutical sector and the broader market over the past year. Key factors likely contributing to this return include the company's manufacturing expansion, which included $23 billion in investments across global sites since 2020, boosting capacity to meet rising medicine demand. Eli Lilly's enhanced R&D efforts, including a robust pipeline with successful trials like the Phase 3 results for tirzepatide, further positioned it for sustained growth.

Additionally, Eli Lilly's strategic acquisitions, such as Morphic Therapeutics, and collaborations, notably with OpenAI, have fortified its innovative capabilities, potentially bolstering future revenue streams. The company's shareholder-focused activities, including a $15 billion share repurchase program, underscore its confidence in strong cash flow generation and enhancement of shareholder value. This multifaceted progress likely laid the foundation for Eli Lilly's significant market returns over the long term.

Unlock comprehensive insights into our analysis of Eli Lilly stock in this financial health report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:LLY.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com