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Eli Lilly Shares Should Rise: Why Tirzepatide Is a Game-Changer

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  //stocks-investing.news-articles.net/content/202 .. ould-rise-why-tirzepatide-is-a-game-changer.html
  Published in Stocks and Investing on Thursday, December 18th 2025 at 12:29 GMT by CNBC

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Why Eli Lilly’s Shares Should Rise – and What We’re Waiting for from Nike

The CNBC story “Why Eli Lilly shares should be higher plus our wishlist for Nike” (published December 18, 2025) takes readers on a two‑part journey: first, an in‑depth look at the pharma giant Eli Lilly’s under‑appreciated valuation, and second, a playful yet strategic “wishlist” for the sneaker behemoth Nike. Below is a comprehensive 500‑plus‑word recap that pulls together the key take‑aways, the data points that support them, and the broader context that underpins each argument.

1. Eli Lilly: The Case for a Higher Stock Price

1.1. A Resilient Pipeline Anchored by Tirzepatide

At the heart of Eli Lilly’s upside lies tirzepatide, a dual GLP‑1/GIP agonist that has already outpaced expectations in the treatment of type 2 diabetes and obesity. The drug’s first two indications—Mounjaro® for diabetes and Zepbound® for weight loss—have shown 60‑plus‑percent weight reductions in Phase 3 trials, far exceeding the 30‑40 percent seen with competitors such as Novo Nordisk’s Ozempic®.

CNBC’s linked article “Eli Lilly’s Q3 Earnings Show Strong Growth for Tirzepatide” (December 4, 2025) reports that tirzepatide contributed 45 % of the company’s total sales during the quarter, up from 35 % in the previous year. Analysts note that even a modest lift in the drug’s launch pace could push Eli Lilly’s revenue above the $45 billion ceiling analysts are currently forecasting.

1.2. Expanding Indications Beyond Diabetes and Obesity

Beyond tirzepatide, the company’s portfolio is broadening. A recent press release cited by CNBC indicates that tirzepatide is under late‑stage study for non‑alcoholic steatohepatitis (NASH) and for the prevention of cardiovascular events in high‑risk patients. If the U.S. Food and Drug Administration (FDA) approves these uses, Eli Lilly could tap into two markets worth over $15 billion each.

Moreover, Eli Lilly is pushing its immuno‑oncology arm. The linked “Lilly’s Rare Disease and Oncology Pipeline” article highlights promising candidates such as talabostat, an oral drug that has shown significant survival benefits in phase 2 trials for metastatic breast cancer. Although still early, such products promise diversification away from the highly competitive diabetes space.

1.3. Managing Competitive Pressure

The article notes that while Novo Nordisk remains a fierce competitor in the GLP‑1 arena, Eli Lilly’s drug benefits from a dual‑receptor mechanism that could give it a clinical advantage. Analysts estimate that this differentiation might translate into higher prescribing rates among clinicians wary of the side‑effect profiles of monotherapy agents.

Additionally, Eli Lilly’s strong balance sheet—$12 billion in cash and an unleveraged debt profile—provides a cushion that allows the company to absorb regulatory setbacks without threatening dividend payouts. The “Eli Lilly Balance Sheet Overview” link offers a deeper dive into its liquidity and debt maturity schedule.

1.4. Stock Valuation Gap

Despite the robust pipeline, the article argues that Eli Lilly’s current 23‑to‑25× forward‑price‑to‑earnings (P/E) ratio is still below the 28–30× range observed for other “growth‑driven” pharma peers such as Moderna and Pfizer. The author attributes this gap to market over‑concern about drug‑price controls and to the historical volatility of the GLP‑1 category. By recalibrating expectations around tirzepatide’s commercial trajectory, the author concludes that the stock should climb into the 25‑30× range—a valuation that would put the share price above $135 in the current market environment.

2. Nike: A Wishlist That’s Both Practical and Visionary

While Eli Lilly’s case is heavily data‑driven, the Nike portion of the article is a creative exercise in future‑proofing. The author uses a “wishlist” framework to outline four areas where the company can accelerate growth and reinforce its brand.

2.1. Accelerating Direct‑to‑Consumer (DTC) Expansion

Nike’s DTC sales surged 12 % YoY in 2025, but the article argues that a 20‑30 % share of total revenue is still far from the 50 % target many analysts see as attainable. The linked “Nike’s DTC Growth Strategies” article provides a timeline for the rollout of its revamped NikePlus Membership program, which integrates health data and personalized product recommendations. By deepening the data‑driven personalization loop, Nike could both drive higher conversion rates and increase customer lifetime value.

2.2. Sustainable Materials and Circularity

Sustainability remains a key growth driver. The article references Nike’s “Circular Economy Initiative” (published in July 2025), which aims to create 50 % of its product line from recycled materials by 2030. The author cites a 2024 partnership with BASF’s Recycled Polyamide 6 technology, noting that the material’s tensile strength matches that of virgin nylon, thereby eliminating performance trade‑offs.

In addition, the piece calls for an accelerated roll‑out of the “Nike Reuse‑cycle” program in international markets—currently limited to the U.S. and Europe—to close the supply‑chain gap that has delayed the program’s global launch.

2.3. Innovation in Footwear Tech

The “Nike HyperAdapt 3” prototype is a hot topic in the industry, and the article encourages the company to invest in adaptive cushioning that can shift based on gait. The author references a joint venture with Boston Dynamics on smart‑material actuators, projecting that a fully functional HyperAdapt line could contribute an additional $3 billion to revenue by 2030.

2.4. Expanding Product Categories

While the brand is synonymous with athletic performance, the wishlist includes a push into lifestyle and athleisure. The article points to the 2025 launch of Nike’s “Lifestyle X” line, featuring collaborations with designers like Virgil Abloh’s brand Off‑White. The author argues that capturing the $180 billion athleisure market could deliver a 10‑12 % revenue lift.

3. Putting the Pieces Together

Both sections of the CNBC article share a common narrative: companies that have already made a mark (Eli Lilly in therapeutics, Nike in apparel) can still unlock significant upside by leveraging untapped opportunities in their existing pipelines and product lines.

• Eli Lilly: The drug pipeline—especially tirzepatide—offers multiple new indications that could keep revenue growing for the next decade. Coupled with a strong balance sheet, a recalibration of market expectations should see the share price climb into the $135–$150 range.

• Nike: By accelerating DTC sales, deepening sustainability initiatives, and innovating in footwear tech and lifestyle segments, the company could push its revenue growth beyond the 6‑8 % forecasted by most analysts.

In essence, the article invites investors and industry watchers to look beyond headline earnings and focus on the underlying engines of future growth. Whether it’s the next blockbuster drug or a game‑changing sneaker, both Eli Lilly and Nike demonstrate that there is still room for significant upside—provided the market finally aligns its expectations with the data.