If you invested $1,000 in Eli Lilly 10 years ago, here's the current value of your investment.
The world's most valuable drug manufacturer by market capitalization released its second-quarter earnings results on Thursday, and they were impressive.
Eli Lilly is a pharmaceutical company that produces well-known products such as Mounjaro, a medication for Type 2 diabetes, and Zepbound, a weight loss drug.
According to Eli Lilly, the U.S. Food and Drug Administration approved Zepbound on Nov. 8 as a treatment for weight management and obesity.
In its first full quarter in the U.S. market, Zepbound generated $517.4 million in revenue, according to Eli Lilly's Q1 earnings report. In the second quarter, it reported $1.24 billion in U.S. revenue, per the company's Q2 earnings report.
"Eli Lilly CEO David Ricks stated during a "Squawk Box" interview on CNBC that the company is experiencing unbelievable demand for their drug without actively promoting it. He explained that the demand is organic and has resulted in increased shipments and supply in the United States."
Financial wellness leads to happiness, wealth, and financial security.
Nearly 42% of U.S. adults are obese, and most Americans believe that willpower alone is insufficient to lose weight and maintain it, according to recent data from the Centers for Disease Control and Prevention and a February survey by the Pew Research Center.
The global market for obesity medication is projected to reach $105 billion by 2030, an increase from Morgan Stanley's previous forecast of $77 billion, as the demand for weight loss drugs continues to rise worldwide.
Pharmaceutical companies such as Eli Lilly and Novo Nordisk, which produce Ozempic and Wegovy, are intensely competing to fulfill the growing demand for these medications. To increase their production capacity, both companies are investing heavily in constructing new manufacturing facilities.
How much you'd have if you invested $1,000 in Eli Lilly
Eli Lilly, which has recently garnered attention due to its new medications, has been in existence for almost 150 years. The company was established in 1876 and went public on the New York Stock Exchange in 1952.
CNBC determined the value of a $1,000 investment in Eli Lilly if it had been made one, five, or ten years ago, using the company's Aug. 7 closing share price of $772.14.
If you invested one year ago
- Percentage increase: 49%
- Total as of Aug. 7: $1,490
If you invested five years ago
- Percentage increase: 594%
- Total as of Aug. 7: $6,939
If you invested 10 years ago
- Percentage increase: 1,214%
- Total as of Aug. 7: $13,143
Don't try to predict the future of the stock market
The stock market is inherently unstable, and unforeseen circumstances can cause sudden fluctuations or drops in share prices. Therefore, investors should not rely on a company's short-term performance to predict its future success or failure.
Instead of choosing individual stocks to invest in, consider investing in a low-cost index fund, like an exchange-traded fund, as recommended by billionaire Warren Buffett.
An index fund is designed to replicate the performance of a market index, such as the S&P 500, which tracks the stock performance of approximately 500 large U.S. companies. For example, when you invest in an S&P 500 ETF, your money is distributed among a diverse group of top-performing companies, including Eli Lilly, Apple, and Nvidia.
Since 2014, the S&P 500 has skyrocketed by a little over 169%, and it has soared by nearly 76% since 2019. As of Aug. 7, the index is up by nearly 16% compared with 12 months ago, according to CNBC's calculations.
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