Eli Lilly CEO Says $25B Deal Spree Is About Building Growth Beyond Obesity Into 2030s — ‘Not All These Bets Will Pay Off’

• Eli Lilly’s strategy is to make enough early-phase bets so that some eventually become major products capable of driving growth into the 2030s, the CEO said.
• The company signed a $2.88 billion deal to acquire Merida Biosciences, its 13th buyout in 2026.
• The firm has announced more than $25 billion worth of deals so far in 2026, Ricks said.

Eli Lilly (LLY) CEO David Ricks said the drugmaker is deploying its growing cash flow into new medicines as it looks to build its next engines of growth beyond its dominant obesity and diabetes division.

“We’ve done more deals this year than we did all of last year,” Ricks said in an interview with CNBC on Monday, adding that Lilly has announced more than $25 billion worth of deals so far in 2026.

Ricks acknowledged that not every investment will succeed, but said Lilly’s strategy is to make enough early-phase bets so that some eventually become major products capable of driving growth into the 2030s.

“Of course, it’s a risky business; not all these bets will pay off, but our strategy is to make enough of them that some portion of them could be turned into hits and really grow the company well into the 2030s and beyond,” he added.

LLY stock was down 1.5% at the time of writing, and is on track to post a loss for a sixth straight session.

Eli Lilly’s Two-Fold Long-Term Strategy

Ricks said that currently 65% of the business is in the obesity, weight loss and diabetes space, led by its blockbuster drugs Mounjaro and Zepbound.

However, the long-term strategy is two-fold. While Eli Lilly intends to make its obesity franchise more durable, with products such as Retatrutide and Eloralintide in the pipeline, it will continue to invest in technologies that could transform the treatment of other diseases.

“And at the same time, diversify out of that, investing in technologies that can really change other diseases, the way we've changed obesity. Today's deal is a version of that strategy,” Ricks added, referring to the company’s $2.88 billion deal to acquire Merida Biosciences. 

If the deal goes through, it would mark Eli Lilly’s 13th acquisition in 2026. The transaction is expected to close in the fourth quarter.

Meanwhile, retail sentiment surrounding LLY on Stocktwits remained ‘bearish’ over the past 24 hours.

The stock has gained more than 7% so far in 2026, outperforming rival Novo Nordisk’s (NVO) over 13% decline.

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