Topic: How To Invest

Q: Pat: What do you think about Eli Lilly as a stock to buy? Also, what about Bayer AG? Thanks.

Article Excerpt

A: Eli Lilly & Co., $155.03, symbol LLY on New York (Shares outstanding: 957.0 million; Market cap: $151.0 billion; www.lilly.com), has now recovered all of the gains it lost in the market downturn. It has, in fact, soared beyond its February 2020 all-time high of $147.87. The company discovers, develops, manufactures, and markets human pharmaceutical products. That focus reflects the spinoff of its Elanco Animal Health business in March 2019. The COVID-19 outbreak has created a degree of uncertainty for the company and other drugmakers. Consumers are unlikely to stop buying prescription pharmaceuticals any time soon, but recent lockdown initiatives by governments could lead to potential delays in getting drugs to patients for logistical and other reasons. Overall, Eli Lilly has a relatively new portfolio of drugs, with many of its top therapies still in their early growth phases and protected from generic competition. Its development pipeline is also filled and looks poised to produce several meaningful contributors to revenue. Meanwhile, the shares yield…