Eli Lilly saw a notable 10% increase in its stock price over the last month, driven by several important events. Central to this rise was the encouraging long-term efficacy data for its drug EBGLYSS in treating atopic dermatitis, presented at the American Academy of Dermatology Annual Meeting. Supported by FDA approval in 2024, this product has bolstered investor confidence in the company's innovative pipeline. Additionally, positive earnings results for Q4 2024, with sales reaching $13.53 billion, played a key role, as did the European Medicines Agency’s positive outlook on Jaypirca for chronic lymphocytic leukemia. Amid a broader market slump, with major indexes like the Dow and S&P 500 on track for significant weekly losses, Eli Lilly's performance stands out, driven by these strategic developments and robust financial results, showcasing resilience in a volatile economic climate.

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Over the past 5 years, Eli Lilly has achieved a very large total shareholder return of 670.12%, a reflection of its transformative journey. The company's development of Mounjaro, FDA-approved in 2022 for type 2 diabetes management, showcased its capacity for innovation. Moreover, strategic partnerships like the April 2022 collaboration with Genesis Therapeutics, valued at US$20 million, have bolstered its growth trajectory. The substantial US$2.1 billion investment in 2022 to expand manufacturing facilities in Indiana further underscored Eli Lilly's commitment to enhancing its production capabilities. Despite its high-priced earnings multiple compared to peers, the company's earnings growth over 2024 surpassed both industry and market benchmarks.

In the context of recent performance, it's important to highlight that Eli Lilly's one-year return outpaced both the US Pharmaceuticals industry and the broader market, which saw much smaller returns. This strong performance, coupled with a 15% increase in dividends announced in December 2024, reflects the company's robust earnings growth and ability to maintain investor confidence even amid broader market challenges.

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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.

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