As Eli Lilly Cuts Zepbound Prices, Should You Buy, Sell, or Hold LLY Stock?

Eli Lilly and Company (LLY) is a global pharmaceutical leader focused on discovering, developing, and commercializing medicines in areas such as diabetes, obesity, oncology, neuroscience, and immunology. The company is known for landmark therapies, including insulin and multiple modern biologic and small-molecule drugs, and it invests heavily in research and development to address major unmet medical needs worldwide.

Founded in 1876 by Colonel Eli Lilly, the company is headquartered in Indianapolis, Indiana, USA. Eli Lilly operates in more than 100 countries across North America, Europe, Asia, Latin America, and other global markets.

Eli Lilly’s stock has shown strong performance in 2025. Over the past five days, shares experienced minor volatility, with a decline of approximately 7%, while the one-month gain reached around 15%. In six months, LLY rose around 38%, and year-to-date (YTD) gains exceeded 34%, with 52-week returns at 27% amid robust demand for weight-loss drugs.

Compared to the S&P 500 ($SPX), Eli Lilly significantly outperformed, which saw a 13% gain in the same period and 16% YTD while trading close to its 52-week high despite having a flat performance over the last month.

Eli Lilly and Company reported Q3 2025 revenue of $17.6 billion, up 54% year-over-year (YoY), surpassing analyst estimates of $16.01 to $16.20 billion. Adjusted EPS reached $7.02, beating consensus forecasts of $5.69 to $6.02 by 16% to 19%, driven by volume growth from Mounjaro and Zepbound amid strong demand for GLP-1 therapies.

Gross margin improved to 82.9%, up 1.4-1.9 percentage points YoY, reflecting a favorable product mix despite pricing pressures. Operating cash flow and free cash flow benefited from high-margin incretin sales, and cash reserves remained robust at $9.8 billion to support R&D and manufacturing expansion. Key metrics included 62% volume growth offset by 10% price declines, with U.S. revenue up 45%.

For full-year 2025, Eli Lilly raised guidance to $63 to $63.5 billion in revenue (from its previous $60 to $62 billion) and adjusted EPS of $23 to $23.70 (from $21.75 to $23), incorporating tariff impacts but not additional threats. Management emphasized sustained GLP-1 momentum, new launches like Kisunla, and pipeline progress despite competition.

Eli Lilly is slashing cash prices for single-dose vials of its blockbuster weight-loss drug Zepbound on the LillyDirect direct-to-consumer platform, effective immediately.

Cash-paying patients with a valid prescription can now purchase the drug for $299 to $449 per month, depending on the dose, down from the previous $349 to $499 range. This includes a $50 cut for the lowest 2.5 mg dose to $299, a $100 reduction for the 5 mg dose to $399, and $50 off higher doses (7.5–15 mg) to $449.

The move follows President Trump’s recent deals with Eli Lilly and rival Novo Nordisk (NVO) to boost access and affordability of GLP-1 weight-loss drugs amid limited insurance coverage. Lilly aims to ease financial barriers despite Zepbound’s $1,086 list price, with executives committing to further options like new delivery devices.

Eli Lilly is a clear buy, as indicated by the market rating of “Strong Buy” from analysts. However, its mean price target of $1,041.60 doesn’t show much room for improvement, given that the stock trades slightly above it, raising caution for potential investors.

The stock has been rated by 27 analysts, receiving 20 “Strong Buy” ratings, two “Moderate Buy” ratings, and five “Hold” ratings.

On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com