Moody's Ratings affirmed Eli Lilly and Company's Aa3 senior unsecured notes and long-term issuer ratings on Friday. In the same action, Moody's revised the pharmaceutical giant's outlook to Positive from Stable.
The outlook change is driven primarily by Eli Lilly’s strengthening leadership in incretin therapies. Moody's anticipates the highly successful tirzepatide products, Mounjaro and Zepbound, will fuel strong earnings growth in the coming years.
The agency believes the company is well-positioned for expansion in the diabetes and obesity markets, despite potential competitive price reductions. Key factors for long-term category leadership include the superior efficacy of tirzepatide in clinical trials and a robust pipeline featuring oral treatments.
Moody's expects Eli Lilly will maintain conservative financial policies. This expectation is supported by strong earnings and free cash flow.