Eli Lilly (LLY 0.53%) has been firing on all cylinders over the past two years and recently became the first healthcare company to hit $1 trillion in market value. The drugmaker owes much of that performance to tirzepatide, a medicine marketed as Zepbound for weight loss. Sales of this drug have been growing incredibly rapidly, enabling Eli Lilly to post excellent financial results.
However, the drugmaker recently announced that it was cutting the price of Zepbound, and the stock dropped as a result. Should investors buy the dip? Or does this news make Eli Lilly’s shares less attractive?
The rationale behind the move
On Dec. 1, Eli Lilly announced that it was decreasing the prices of Zepbound single-dose vials…
