Lilly (Eli)

Capital is being deployed primarily to increase supply and support R&D, which is appropriate given extraordinary demand and the need to de‑risk bottlenecks. 2024–2025 cash flows show heavy PP&E spend and multiple financings to fund pipeline and manufacturing.

The company is active in business development, completing Verve Therapeutics to expand into one‑time cardiometabolic gene editing and SiteOne Therapeutics to grow non‑opioid pain, while advancing internal metabolic and neuroscience programs.

Dividends are sizable and rising; buybacks resumed with a 15 billion dollar authorization in late 2024, with 2.6 billion dollars repurchased YTD through September 2025 and 12.4 billion dollars remaining.

We view allocation as generally rational, with the main risk being overpaying or scattering focus; thus far, deals appear modest relative to the market cap and strategic fit is coherent.