Beyond Mounjaro and Zepbound: 6 Other Drugs That Could Be Blockbusters for Eli Lilly

Eli Lilly (LLY -1.10%) is at the top of the biopharmaceutical world. It is by far the largest drug maker based on market capitalization. Lilly’s stock price has skyrocketed nearly 700% over the past five years and is up nearly 55% in 2024.

Much of this success is due to two products, Mounjaro and Zepbound, which are the same drug marketed under different brand names to treat type 2 diabetes and obesity, respectively. But Mounjaro and Zepbound aren’t Lilly’s only drugs with potential for success.

Already on the market

The US Food and Drug Administration (FDA) has approved three likely big winners for Lilly from early 2023. They are now on the market and gaining momentum.

The FDA approved Omvoh (mirikizumab) in October 2023 to treat ulcerative colitis. Sales for the drug in the first half of 2024 were not high enough for Lilly to provide details. However, that could soon change. The company is awaiting FDA approval for Omvoh in the treatment of Crohn’s disease. Leerink Partners analyst David Risinger said in 2023 that the drug could generate peak annual sales of $2 billion.

In January 2023, the FDA approved Jaypirca (pirtobrutinib) to treat mantle cell lymphoma. Less than 11 months later, the drug received a second approval as a third-line treatment for chronic lymphocytic leukemia and small lymphocytic lymphoma. Lilly is evaluating Jaypirca in advanced studies for other indications as well. GlobalData expects it to post sales of about $3 billion by 2032.

Lilly’s most recent big regulatory win came two months ago with the FDA’s approval of Kisunla (donanemab) to treat Alzheimer’s disease. Some analysts estimate that the drug could reach peak annual sales of $8 billion, while others estimate that peak sales of $4 billion are more likely.

Pipeline sees the future

More blockbusters could be on the way: Lilly’s pipeline features several late-stage candidates that should have major commercial potential.

The company is evaluating orforglipron in phase 3 clinical trials targeting type 2 diabetes and obesity. Unlike Mounjaro and Zepbound, this experimental drug is a pill rather than an injection, and the convenience factor could be a big selling point. In 2023, Morningstar predicted that orforgliprone could generate peak annual sales of nearly $10 billion if approved.

However, it’s not the only promising diabetes and obesity drug in Lilly’s bunker. The drugmaker is also evaluating retatrutide in phase 3 trials targeting type 2 diabetes and obesity. Because of its potential best-in-class efficiency, it’s likely to be a particularly big winner for Lilly.

And let’s not leave out remternetug, which Lilly is testing in a phase 3 trial as a potential treatment for Alzheimer’s disease. Early data suggested that remternetug might be even more effective at removing amyloid plaque than Kisunla. Whether this translates into impressive clinical benefits remains to be seen. If it does, Lilly could have another Alzheimer’s blockbuster on its hands.

Should You Buy Eli Lilly Stock?

You might look at Eli Lilly’s forward price-to-earnings ratio of 43 and conclude that the stock is too expensive to buy. The problem with this valuation metric, however, is that it is not sufficiently forward-looking. Much of Lilly’s growth will take place after the next year or two.

Lilly clearly has a lot of growth factors — and the list includes more than Mounjaro, Zepbound, and the six drugs discussed earlier. Cancer drug Verzenio, type 2 diabetes drug Jardiance and autoimmune disease drug Taltz are all blockbusters with strong sales momentum.

I think Eli Lilly’s growth story is compelling and the stock remains an excellent pick.