If You Invested $1,000 In Pharmaceutical Company Eli Lilly 10 Years Ago, Here’s How Much Money You’d Have Now – NBC 6 South Florida

One of the world’s most valuable drugmakers by market capitalization released impressive second-quarter financial results on Thursday.

Even if you’ve never heard of the pharmaceutical company Eli Lilly, you’re probably familiar with some of its most popular products: Mounjaro, a prescription drug for type 2 diabetes, and Zepbound, a prescription weight-loss drug.

Zepbound was approved on November 8 by the U.S. Food and Drug Administration as an aid in weight management and obesity, according to Eli Lilly.

In its first full quarter in the U.S., Zepbound brought in $517.4 million in revenue, Eli Lilly said in April. In the second quarter, it generated $1.24 billion in U.S. revenue, according to the company’s second-quarter earnings report.

“We’re just seeing incredible demand, and we’re not even trying to promote this drug that much,” Eli Lilly CEO David Ricks told CNBC’s “Squawk Box” on Thursday. “What you’re seeing is just consumer demand for organic because we’ve brought more product, because we’ve increased supply in the United States.”

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Obesity affects nearly 42% of adults in the United States, according to the latest data from the Centers for Disease Control and Prevention. In addition, most Americans believe that willpower alone is not enough to lose weight and maintain a healthy weight, according to a February Pew Research Center survey.

Demand for weight-loss drugs is also growing worldwide. According to research by Morgan Stanley, the global obesity drug market is expected to reach $105 billion by 2030. That’s more than the company’s September forecast of $77 billion.

And drugmakers like Eli Lilly and Novo Nordisk, the pharmaceutical company that makes Ozempic and Wegovy, are racing to meet that demand, with both companies investing billions to build new manufacturing plants to increase supply of popular drugs.

How much would you have if you invested $1,000 in Eli Lilly

Although Eli Lilly has been making headlines recently for its latest drugs, the company has been around for almost 150 years. It was founded in 1876 and became a public company listed on the New York Stock Exchange in 1952.

CNBC calculated how much a $1,000 investment in Eli Lilly would be worth if you invested in the company one, five or 10 years ago. CNBC’s calculations are based on Eli Lilly’s closing share price on Aug. 7, which was $772.14.

If you invested a year ago

• Percentage increase: 49%
• Total as of August 7: 1490 dollars

If you invested five years ago

• Percentage increase: 594%
• Total as of August 7: 6939 dollars

If you invested 10 years ago

• Percentage increase: 1.214%
• Total as of August 7: $13,143

Don’t try to predict the future of the stock market

By its nature, the stock market is unpredictable, and factors beyond the control of investors or the company can cause a stock’s price to fluctuate or fall suddenly. Therefore, investors should not try to use a company’s short-term performance to predict how well or poorly it might do in the future.

Instead of trying to handpick individual stocks to invest in, try investing your money in a low-cost index fund such as an exchange-traded fund, an investment strategy that billionaire Warren Buffett swears by.

An index fund aims to replicate the performance of a market index, such as the S&P 500, which tracks the performance of about 500 large U.S. companies. When you invest in an S&P 500 ETF, for example, your dollars are actually spread across a wide range of top-performing companies, such as Eli Lilly, Apple, and Nvidia.

To this point, as of Aug. 7, the S&P 500 is up nearly 16% from 12 months ago, according to CNBC calculations. The index is up nearly 76% since 2019 and up just over 169% since 2014.

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