Eli Lilly Has Been on an Acquisition Spree. How Much Could Its Latest Deals Boost the Stock?

Eli Lilly's (NYSE: LLY) success in the GLP-1 weight-loss space highlights one of the biggest risks it faces right now. And it helps explain why the company leading the GLP-1 race is working so hard to acquire smaller drugmakers to broaden its drug pipeline. The truth is, Eli Lilly's latest deals probably won't boost its stock right now, but they could be the foundation that builds the pharmaceutical giant's future. Here's what you need to know.

If you look at Eli Lilly's second-quarter revenues, you come away with a very clear picture of the pharmaceutical company's business. Mounjaro, Zepbound, and Foundayo account for nearly two-thirds of the company's top line. That's a huge number when you consider that all of these drugs are targeted at the same health issue: weight loss. But Eli Lilly isn't really a weight-loss company; it is a drug maker. It just happens that its weight-loss drugs have become incredibly important products.

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