ELI LILLY AND COMPANY

Red flags

• Debt rose to $42.5 billion at December 31, 2025 from $33.6 billion a year earlier; interest expense increased to $895 million from $781 million, while the company issued $13.25 billion of long-term debt during 2025.
• The business is increasingly dependent on Mounjaro and Zepbound for growth: management says 2025 volume gains and lower realized prices were primarily driven by these products, but provides no product-level revenue concentration in the excerpt.
• Global advertising expense more than doubled to $2.9 billion in 2025 from $1.4 billion in 2024, increasing commercial investment as the company scales the obesity franchise.
• Lilly is predominantly self-insured for litigation liability losses and states that future product-liability claims could be large; the excerpt provides no quantified maximum exposure.