Indianapolis Star
Eli Lilly and Co. has continued on its climb as a pharmaceutical powerhouse, developing several successful drugs while also weathering lawsuits, and is trading at historic highs reaching to over $460 a share in the stock market.
“From most metrics, Lilly is trading at (a) historically high valuation level,” Damien Conover, the director of health care equity research for Morningstar Research Services, wrote in an email to IndyStar.
Known for its insulin production and innovative nature, Indianapolis-based Lilly brought in around $28.5 billion in revenue, closing the year with a nearly $6.25 billion net income.
Michael Hicks, a professor of economics at Ball State University, said a company like Lilly is expected to rise financially as they are producing medicines that prolong the life of patients and reduce incidences of disease here in the United States.
He said more people are spending money and investing in goods that extend longevity. Especially now, with the COVID-19 pandemic and other health issues people in the country are facing, people have become reliant on the pharmaceutical industry.
“I think it is the golden age of pharmaceuticals,” Hicks said.
Conover said a lot of the success Lilly is experiencing stems from their commitment to research and development.
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