The acquisition aims to diversify beyond GLP-1 drugs, which drove $12.8 billion in Q1 revenue but face long-term patent risks.
Eli Lilly (LLY) has acquired three vaccine-focused companies for $3.8 billion, expanding into infectious diseases despite its reliance on GLP-1 drugs Mounjaro and Zepbound. The two treatments generated $12.8 billion in Q1 2026 revenue, up 125% and 80% year-over-year, respectively, but face eventual patent expirations.
The company’s GLP-1 portfolio, including the new pill Foundayo, has propelled its valuation to a 39x P/E ratio, well above the pharmaceutical sector average of 24x. While investors focus on near-term growth, the vaccine deals signal a strategic shift to mitigate future revenue concentration risks.
Markets remain bullish on LLY’s GLP-1 leadership, but the acquisitions underscore long-term diversification efforts in a sector where drug lifecycles are inherently limited.