Pharmaceutical giant Eli Lilly is leveraging its robust financial position to expand its therapeutic reach beyond its blockbuster metabolic drugs. The company announced two significant transactions this week, targeting the oncology and immunology sectors, building on the momentum of impressive annual results. These strategic moves coincide with fresh analyst commentary and an approaching dividend date for shareholders.
Financial Performance Sets the Stage for Expansion
The company’s recent acquisition plans are supported by formidable financial results. For the fourth quarter of 2025, Eli Lilly reported revenue of $19.29 billion, representing a year-over-year increase of 42.6%. This surge was primarily fueled by strong demand for its GLP-1 therapies, Mounjaro and Zepbound. Looking ahead, management provided a 2026 revenue forecast ranging between $80 and $83 billion.
Strategic Moves Worth Over $11 Billion in Potential Value
In a two-day span this week, Eli Lilly confirmed agreements with a combined potential value exceeding $11 billion.
Collaboration with Innovent Biologics: The company expanded an existing partnership, focusing on oncology and immunology. The deal holds a potential total value of up to $8.85 billion, which includes an upfront payment of $350 million. Under the terms, Innovent will lead early-stage development in China, while Eli Lilly retains commercial rights outside the Greater China region.
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Acquisition of Orna Therapeutics: A definitive agreement was reached to acquire Orna Therapeutics for a total consideration of up to $2.4 billion, inclusive of upfront and milestone payments. This transaction grants Lilly access to Orna’s proprietary in vivo CAR-T platform, notably its lead program, ORN-252. This candidate is aimed at treating B-cell autoimmune diseases and is anticipated to enter clinical trials in 2026.
Market Analysts Adjust Price Targets
In response to the company’s performance and strategy, equity researchers have updated their assessments. Deutsche Bank raised its price target to $1,285 during the week, citing the company’s powerful earnings momentum. Separately, CICC Research adjusted its target to $1,107, maintaining a “Neutral” rating on the shares.
Shareholder Calendar: Dividend Date Approaches
For investors, a key near-term date is on the horizon. The stock will trade ex-dividend this Friday. Shareholders of record by that date will be entitled to the declared dividend of $1.73 per share, with the payment scheduled for March 10.
Eli Lilly’s shares closed at $1,044.67 on Tuesday, marking a decline of 1.28% for the session. The company’s strategic direction remains focused: to continue scaling its highly successful metabolic business while using the generated cash flow to diversify more deeply into genetic medicines and cancer therapies.
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