Eli LillyWide moat

LLY — overall economic moat

Investment snapshot
Wide moat↗ WideningConfidenceHighValuationExpensive
Strongest advantageIncretin (GLP-1) franchise
Greatest threatPatent cliff & oral competition
Key metricROIC vs WACC
Verdict: A narrow-to-wide moat built on patents and the incretin lead; tirzepatide is now about two-thirds of revenue, prices are falling fast abroad, and the 2036 patent date is the clock.
📈 LLY valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Eli Lilly sells patented medicines, and at the moment it sells the most coveted ones on earth. Of the $65.2 billion collected in 2025 — up 45%, growth no company this size normally prints — the incretin franchise supplied more than half: Mounjaro, the diabetes injection, brought roughly $23 billion, and Zepbound, the same molecule badged for obesity, about $13.5 billion1. Verzenio, the breast-cancer drug, added $5.7 billion; Trulicity, the aging predecessor the new drugs cannibalized, $3 billion; and the long tail of insulins, immunology and neuroscience roughly $20 billion more.

FY2025 revenue by product, $65.2BMounjaro — 35%Zepbound — 21%Verzenio — 9%Trulicity — 5%Other products — 31%Mounjaro + Zepbound are one molecule (tirzepatide) under two brands — >half the company.
Half the ring is a single molecule wearing two names — the concentration that built the growth, and the exposure that shadows it.

The model is the industry's oldest bargain run at modern scale: spend enormous sums inventing molecules (about $13 billion a year of R&D), win patents that grant a monopoly measured in years, and price accordingly — the gross margin was 83.0% in 2025 and 85.8% in the second quarter of 2026.23 Two-thirds of revenue is American, which is where the pricing power lives and where the political risk does too. The latest quarter shows both faces: revenue up 48% to $23.0 billion on 60% more volume, while realized prices fell 13%, and 36% outside the United States.4

What distinguishes Lilly from the sector is concentration by choice: it bet the company on metabolic disease years before the world wanted GLP-1s, and now spends ~$50 billion on factories to meet a demand measured in hundreds of millions of patients. The wager repeats each decade — the patents expire on schedule, and the pipeline must out-invent the calendar.

Whether the machine defends itself — the patent estate, the incretin franchise, the R&D engine, the manufacturing wall — is the moat question, taken up wall by wall in The Moat below. The expiries and price politics live in the threats; the market's arguments in the insights; and the next decade's molecules — the pill, the triple agonist, Alzheimer's, the Lp(a) long shot — under Future Bets. Each of the five product lines in the revenue chart is taken in turn in The Revenue Lines.

The number that tests this moat
Moat Explorer calc
Revenue, and where it comes from
$79.7B trailing twelve months to June 2026; tirzepatide (Mounjaro and Zepbound) about 62%

One molecule now earns most of the money. The share rising further makes Lilly more exposed to one patent and one price negotiation.

How it's calculated: Revenue 65,179 + 42,773 - 28,286 = 79,666; tirzepatide 49,466 / 79,666. Mounjaro + Zepbound: FY2025 22,965 + 13,542 = 36,507; H1 2026 18,605 + 9,088 = 27,693; H1 2025 9,041 + 5,693 = 14,734; trailing twelve months 36,507 + 27,693 - 14,734 = 49,466. Q2 2026 9,943 + 4,928 = 14,871; Q2 2025 5,199 + 3,381 = 8,580.
Source: Lilly Form 10-K, FY2025; Lilly Form 10-Q, quarter ended 30 June 2026 ↗
Moat scorecardHow ratings work →
Switching costs5/10
Network effects4/10
Pricing power8/10
Hard to replicate8/10
Disruption resistance6/10
Overall durability8/10

A patent-protected incretin franchise plus a capacity lead; the patent cliff and oral competition are the long-run caps.

Dig deeper
✦ Future bets — beyond today's moat
⚠ Threats to the moat
◆ What the market may be missing
References
  1. ReportedOf the $65.2 billion collected in 2025 — up 45%, growth no company this size normally prints — the incretin franchise supplied more than half: Mounjaro, the diabetes injection, brought roughly $23 billion, and Zepbound, the same molecule badged for obesity, about $13.5 billion.
    Eli Lilly, Form 10-K FY2025 (revenue $65.2B, +45%; Mounjaro ~$23B + Zepbound ~$13.5B — the tirzepatide franchise over $36B combined) — FY2025 · publ. Filed early 2026 · source ↗
  2. ReportedThe model is the industry's oldest bargain run at modern scale: spend enormous sums inventing molecules (about $13 billion a year of R&D), win patents that grant a monopoly measured in years, and price accordingly — the gross margin was 83.0% in 2025 and 85.8% in the second quarter of 2026.
    Eli Lilly Form 10-K, FY2025 - revenue $65,179M (Mounjaro $22,965M, Zepbound $13,542M, Verzenio $5,723M); gross margin 83.0% (81.3%); R&D $13,337M; marketing, selling and administrative $11,094M; acquired IPR&D $2,910M; net income $20,640M; price -6% and volume +50% (U.S. price -10%, volume +53%); rebates, discounts and returns deducted $62,135M; capital expenditure $7,841M; operating cash flow $16,813M ($8,818M, $4,240M); U.S. compound patents: Cyramza 2026, Trulicity 2027, Jardiance 2029, Verzenio 2031, Olumiant 2032, Mounjaro/Zepbound 2036, Jaypirca 2037, Retevmo 2038, Inluriyo 2039; HHS selected Trulicity and Verzenio in January 2026 for government-set prices effective 2028; six products above $3 billion were 82% of revenue; three wholesalers each 16%-24% of revenue — FY2023-FY2025 · publ. February 2026 · source ↗
  3. ReportedThe model is the industry's oldest bargain run at modern scale: spend enormous sums inventing molecules (about $13 billion a year of R&D), win patents that grant a monopoly measured in years, and price accordingly — the gross margin was 83.0% in 2025 and 85.8% in the second quarter of 2026.
    Eli Lilly Form 10-Q, quarter ended 30 June 2026 - revenue $22,974M (+48%): Mounjaro $9,943M (U.S. $4,791M, outside $5,152M), Zepbound $4,928M, Jardiance $1,232M, Trulicity $1,219M, Verzenio $1,474M; oncology $2,570M, immunology $1,417M, neuroscience $429M; volume +60% and price -13% (U.S. +37%/-3%, outside +113%/-36%); gross margin 85.8% (84.3%); R&D $3,819M; MS&A $3,430M; acquired IPR&D $2,776M; special charges $703M; tax rate 23.3% (16.5%); net income $7,095M; diluted EPS $7.94; H1 capital expenditure $5,259M and operating cash flow $16,023M — Q2 2026 · publ. August 2026 · source ↗
  4. ReportedThe latest quarter shows both faces: revenue up 48% to $23.0 billion on 60% more volume, while realized prices fell 13%, and 36% outside the United States.
    Eli Lilly Form 10-Q, quarter ended 30 June 2026 - revenue $22,974M (+48%): Mounjaro $9,943M (U.S. $4,791M, outside $5,152M), Zepbound $4,928M, Jardiance $1,232M, Trulicity $1,219M, Verzenio $1,474M; oncology $2,570M, immunology $1,417M, neuroscience $429M; volume +60% and price -13% (U.S. +37%/-3%, outside +113%/-36%); gross margin 85.8% (84.3%); R&D $3,819M; MS&A $3,430M; acquired IPR&D $2,776M; special charges $703M; tax rate 23.3% (16.5%); net income $7,095M; diluted EPS $7.94; H1 capital expenditure $5,259M and operating cash flow $16,023M — Q2 2026 · publ. August 2026 · source ↗
Sources
Generated September 23, 2026