Eli Lilly Just Landed a “Prime” Partner in This “Next Blockbuster” Drug Race
This alliance is sheer brilliance ...
In this issue of Investing Daily Dose (IDD):
✅Bigger Than a Delivery Deal✅
Our kick-off issue of IDD christened 2024 as the “Year of Weight-Loss Drugs,” with Eli Lilly & Co. LLY 0.00%↑ and Novo Nordisk NVO 0.00%↑ leading the pack.
Both are performing well:
But Eli Lilly may have significantly just pulled ahead with a total power move: It struck a deal with Amazon.com Inc AMZN 0.00%↑ to have the e-commerce giant deliver Lilly’s migraine, diabetes and obesity medications.
We’re talking about deliveries of such “Next Blockbuster” breakouts like the diabetes drug Mounjaro ($5 billion in sales last year) and the recently-approved weight loss drug Zepbound.
But this is more than just a “fulfilled-by-Amazon” delivery deal.
Eli Lilly launched its direct-to-consumer website LillyDirect in January for access to telehealth and pharmacy services. And though weight-loss drugs are already experiencing revved-up demand, Lilly still has to create brand awareness (i.e. spend marketing dollars) for the nascent LillyDirect – AND get people to use the site.
On top of that, the drugs still need to get delivered.
The alliance with Amazon is sheer brilliance: Analysts figure that nearly 70% of American households have an Amazon Prime account.
And back in November – after Amazon snagged One Medical for $3.9 billion – it introduced a new Prime membership through One Medical that includes nationwide 24/7 virtual care and “easy-to-schedule office visits” — for $9 a month, or $99 annually.
If someone hears Amazon will deliver a certain medicine, they’re likely to sign up for Amazon’s $9 health service – knowing they’ll get Eli Lilly’s medicines via an easy-to-use, no-fuss Prime-like delivery.
It’s a “marketing boost” that’s likely to connect Lilly with the “weight-loss curious” among Amazon’s customer base: They’ll check out Eli Lilly’s offerings – probably over the rivaling Novo offerings Ozempic and Wegovy.
Amazon scores here, too, meaning this “benefit boulevard” runs both ways. By getting folks easier access to, and delivery of, these new therapies, Amazon will sign up more customers for its health services.
That’s flat out a growth injection for what Chief Stock Picker of our syndicate publication Stock Picker’s Corner (SPC), Bill Patalon, has dubbed as “Dr. Amazon.”
In a 2019 CNBC report, a Loop Capital analyst projected (without an exact time frame) that Amazon’s foray into health could spawn an additional $72 billion in revenue.
Bill says these are both stocks for Wealth Builders.
He has a free report about Amazon’s foray into health in the link below:
And a free report that shows why this will be the “Year of Weight-Loss Drugs” in the link below: