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Eli Lilly (LLY) stock is sinking as investors react to concerns around GLP-1 drugs and industry dynamics. Red Brook Advisors managing partner Syed Husain joins Catalysts to discuss the market moves and explain why markets may be overreacting.
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The EPS growth that we're expecting over the next few quarters is just fantastical, right? I mean, that's why you see the stocks doing so well uh prior to today's announcement. You know, the question is is that is is the impairment enough on what they discussed today? Is it enough for a stock like this to sell off? I mean, these GLP-1s, uh, they they are obviously producing quite a bit of revenue for these companies. Obviously, there's margin there. Uh, you know, the better companies like Lily know how to deal with those, you know, any of those potential snags. Um, you know, I'm wondering is this little a little bit of an overreaction over here uh when you see, you know, see this selling off?
I I I do agree. I think it is a bit of an overreaction by the market. I think that you really need to wait and see how everything comes in together. GLP-1s, as I said, is one aspect of it, but there's a lot going on. You know, there's this whole issue with the PBMs and how they're going to be continuing to be playing a role in the segment and and how important they are in terms of drug negotiations. And and so I I think this is the market just reacting to the news here and and and having a quick one, but I think we need to take a step back and really see what what the broader, you know, impact is on everything going on for this for for this company.
