Nomura Large Cap Growth Fund on Eli Lilly and Company
Thesis
The fund initiated a new position in Eli Lilly after a pullback in the shares. Management believes Lilly can capitalize on the expansion of GLP-1 weight-loss drugs into the mass consumer market. Wider availability, lower costs and oral dosing options are expected to broaden the addressable market materially. Although average pricing is expected to decline, the fund believes higher volumes will more than offset that pressure.
“we believe this will be more than offset by volume growth”
Key risks
- Average pricing for weight-loss drugs is expected to decline.