Eli Lilly (NYSE: LLY ) Currently growing the fastest thanks to Monjaro and Zipbound, two of its GLP-1 drugs, the latter of which is approved for weight loss. Monjaro sales increased 99% in 2025, and Zipbound sales increased an astounding 175%.
But these two drugs almost accounted for Lilly’s high growth last year. That’s a problem in the making — and why you might want to consider an out-of-favor alternative like High Yield Pfizer (NYSE: PFE ).
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It is great news that Eli Lilly is leading the pack in the newly developed GLP-1 drug space. However, the company quickly turned into a one-trick pony. As mentioned, Monjaro (used to treat diabetes) and Zipbound are the company’s primary growth drivers right now. And these two drugs account for 56% of the top line in 2025, which is a bit disturbing.
Given the nature of the drug space, Monjaro and Zipband will eventually face generic competition. When this happens, their revenues and profits will be materially reduced. There’s time before that happens, but don’t count out Lilly’s competitors. Many of its peers are looking for GLP-1 drugs that can eliminate their dominant competitor.
Meanwhile, Wall Street is calling Eli Lilly shares as high as a price-to-earnings (P/E) ratio of 45, and a dividend yield of just 0.6%. If the company’s GLP-1 rule is less than perfect, there may be a risk of material loss.
Pfizer’s internally developed GLP-1 drug failed to work. Drug failures are not uncommon in the pharmaceutical sector. But this misstep, combined with the impending patent expiration, has investors deeply concerned about Pfizer’s future.
On the other hand, the company recently said that it plans to support the dividend at current levels as it works through its overhead. The stock currently offers a high yield of 6.3%, and (compared to Lilly) has a very favorable P/E ratio of around 20.
That said, the main reason for Pfizer’s purchase is what happened after the failure of its GLP-1 drug. The company quickly acquired a biotech with a GLP-1 drug candidate, and then signed a distribution partnership with another pharmaceutical company that developed a GLP-1 pill.
Essentially, Pfizer is proving that it has the potential to survive and grow for the long term. Given this and the dividend’s stated support, long-term income investors should take the time to investigate this unloved pharma stock today. If history is any guide, Pfizer will eventually get back into Wall Street’s good graces.
(translating tags) Eli Lilly
