Lilly (Eli)

Intangible assets: Very strong. Lilly owns valuable brands and a deep IP estate across metabolic disease, oncology and neuroscience. Zepbound and Mounjaro have established physician and patient trust and benefit from extensive outcomes data and now an OSA label. Kisunla adds Alzheimer credibility with an approved therapy and improved dosing label.

Cost advantage and efficient scale: Strong. Gross margins exceed 80% and the company is investing billions to expand dedicated incretin capacity in the U.S. and internationally, including new facilities and site expansions, creating scale and supply security advantages that are hard to replicate quickly. Switching costs: Moderate.

GLP‑1/GIP class switching is possible, but device familiarity, insurance pathways, and clinical inertia provide some stickiness; OSA and future CV outcomes data should reinforce persistence. Network effects: Low. There is no classic network effect, though data breadth and care‑path integration improve prescribing ease over time.

Moat durability: High but not invulnerable. The primary erosion vectors are: future Medicare/IRA price pressure once small‑molecule or oral assets reach eligibility windows, competitive innovation from Novo Nordisk and others, and potential safety/tolerability ceilings for next‑gen agents.

Overall, multiple moats are present and strengthening, particularly scale and IP. Evidence: Zepbound OSA approval; Kisunla FDA and EU approvals and label update; manufacturing expansions and guidance updates.