Eli Lilly's Oncology Ambitions Take Center Stage

While its blockbuster weight-loss drugs continue to dominate headlines, Eli Lilly is making decisive moves to build a formidable presence in cancer treatment. The company's strategic focus was underscored this week by the acquisition of biotech startup CrossBridge Bio for up to $300 million and the presentation of landmark clinical trial data for its blood cancer drug Jaypirca.

The newly acquired CrossBridge Bio, founded just last year, specializes in developing antibody-drug conjugates (ADCs). These therapies are designed to target cancer cells more precisely than traditional chemotherapy. The Houston-based firm’s lead candidate, CBB-120, focuses on TROP-2-positive tumors using a dual-ADC approach intended to reduce side effects and improve efficacy. The startup had previously secured $15 million in funding from the Texas-based CPRIT institute for early clinical studies, validating the scientific promise behind Lilly's deal.

This acquisition is part of a clear strategic pattern, marking Lilly's tenth oncology purchase as it builds out its pipeline in the competitive cancer space.

Simultaneously, the company announced a significant clinical milestone. Phase 3 data for Jaypirca showed that, in combination with two other agents, it significantly delayed disease progression in leukemia patients. In a notable first for the company, the study outperformed the current standard treatment, Venetoclax, in a direct head-to-head comparison. Management now plans to swiftly submit this data to global regulatory authorities.

Should investors sell immediately? Or is it worth buying Eli Lilly?

Despite these strategic and clinical advances, investor sentiment remains cautious. The stock currently trades around €795, approximately 17% below its 52-week high and down about 14% since the start of the year. A relative strength index (RSI) reading of 38 suggests the market is currently skeptical. A primary concern is the stock's lofty valuation, trading at 40 times earnings—a significant premium to the broader market.

This valuation pressure persists even as Lilly's core metabolic business delivers staggering growth. For the full year 2025, the company reported revenue of $65.2 billion, a 45% increase over 2024. In the fourth quarter alone, sales of Mounjaro surged 110% to $7.4 billion, while Zepbound revenue jumped 122% to $4.2 billion. Combined, these two blockbusters generated nearly $12 billion in the final quarter of 2025.

Looking ahead, management has set an ambitious revenue target of $80 to $83 billion for 2026. Analysts remain broadly optimistic. Morgan Stanley analyst Terence Flynn recently raised his price target to $1,327 and reaffirmed an "Overweight" rating. Other firms maintain bullish outlooks, with targets including $1,296 from Leerink Partners, $1,250 from RBC Capital, and $1,205 from Cantor Fitzgerald.

Eli Lilly at a turning point? This analysis reveals what investors need to know now.

All eyes are now on the company's first-quarter earnings report, scheduled for April 30. Investors will scrutinize the results for early signs of traction for the newly launched oral GLP-1 pill, Foundayo (orforglipron), and assess whether the company's aggressive acquisition strategy and costly drug launches are impacting profit margins. Foundayo is now available through LillyDirect, telehealth providers, and pharmacies, with Amazon Pharmacy offering same-day delivery in nearly 3,000 areas—a figure expected to reach 4,500 communities by the end of 2026. Insured patients can access it for as little as $25 per month.

With four successful Phase 3 studies recently completed, Eli Lilly enters this reporting season from a position of clinical strength, even as it navigates the high expectations embedded in its share price.

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