Why Eli Lilly Shares to Buy for Long-Term Investors Looking at the Next 20 Years

Artificial intelligence is reshaping industries across the global economy, and the healthcare sector is no exception. Pharmaceutical and biotech companies are racing to harness AI’s potential to accelerate drug development and improve outcomes. For investors seeking quality shares to buy with a multi-decade horizon, Eli Lilly (NYSE: LLY) represents a compelling opportunity that combines proven innovation with cutting-edge technology investments.

Combining Strong Innovation with AI Advancement

What distinguishes Eli Lilly from its sector peers isn’t just one strategic move, but rather a coordinated series of artificial intelligence investments. The company has signaled its commitment to leveraging AI as a core competitive advantage, far exceeding the efforts of similarly sized pharmaceutical competitors.

The company’s AI strategy unfolds across three major initiatives. First, it unveiled TuneLab, an artificial intelligence drug discovery platform available at no cost to smaller biotech firms. This move serves dual purposes: smaller drugmakers lacking sufficient capital or datasets can now access sophisticated AI tools for accelerating their research, while Eli Lilly gains access to additional training data that strengthens its own AI models.

Subsequently, Eli Lilly revealed a partnership with Nvidia to construct the pharmaceutical industry’s most advanced AI supercomputer. Most recently, the company announced construction of an AI-focused drug discovery laboratory in the San Francisco Bay Area, developed jointly with Nvidia. This facility will integrate Eli Lilly’s research scientists with Nvidia’s engineering talent to dramatically compress the time required for drug discovery—traditionally one of the slowest phases of drug development.

If these efforts successfully reduce research and development spending and shorten the timeline for bringing medicines to market, both the company and its investors stand to benefit substantially over the coming years and decades.

Strategic AI Investments Accelerating Drug Discovery

Beyond the headline AI initiatives, Eli Lilly operates from a position of considerable strength in the marketplace. The company maintains leadership in the rapidly expanding weight-loss medication sector, where demand continues to accelerate. Products like Mounjaro and Zepbound have captured significant market share and generated substantial revenue growth.

Even as these blockbuster medicines eventually face generic competition following patent expiration—which remains years away—Eli Lilly has fortified its competitive position. The company has strengthened its product pipeline through a combination of internal research initiatives and strategic acquisitions, establishing a diverse portfolio poised for sustained growth.

Portfolio Strength Across Multiple Therapeutic Areas

Eli Lilly’s research efforts span multiple high-opportunity domains, including neuroscience, immunology, and oncology. Over the next five years, investors can anticipate significant clinical breakthroughs emerging from these development programs. The company’s broad exposure across therapeutic categories means that when current growth engines eventually reach patent expiration, proven alternatives will already be generating revenues.

This diversification represents a critical competitive advantage. Rather than facing a single patent cliff, Eli Lilly benefits from a staggered pipeline where new products continuously advance from development through regulatory approval. This structural advantage explains why the company has successfully navigated competitive pressures throughout its history.

Why Long-Term Holders Can Ignore Patent Cliff Concerns

Patent expiration is an inevitable challenge in pharmaceuticals, yet Eli Lilly has demonstrated the organizational capability to overcome this obstacle repeatedly. The company’s proven track record of innovation provides confidence that patent-related headwinds need not derail long-term shareholders’ returns.

The artificial intelligence investments described above represent an additional competitive moat. By substantially reducing drug development timelines and associated costs, these technologies enhance the company’s already formidable ability to bring new treatments to patients and shareholders.

Should You Consider These Shares to Buy?

For investors evaluating Eli Lilly shares to buy at current valuations, consider this perspective: The investment outlook depends partly on recognizing that technological disruption creates lasting opportunities for companies positioned to capitalize on change. Eli Lilly demonstrates the organizational maturity to adopt advanced technologies while maintaining its commitment to rigorous drug development.

Historically, investors who identified quality companies combining technological innovation with proven business models at relatively early stages of AI adoption—similar to how Netflix and Nvidia positioned themselves in previous technology cycles—accumulated substantial wealth. Netflix investors from December 2004 saw their $1,000 investment grow to approximately $464,439, while Nvidia investors from April 2005 witnessed $1,000 become $1,150,455.

Eli Lilly possesses many characteristics that resemble those previous winning investments: established market leadership, commitment to emerging technologies, and a strategic roadmap extending multiple decades into the future. For investors with similar time horizons, these shares to buy merit serious consideration as a core long-term holding.