Matt Frankel

That's why Lilly's paying up for a company that doesn't have a commercial product yet.

This is just a big part of how R&D works in the industry.

Look, I've seen the estimates, it's almost $2 billion that Big Pharma spends to get just one drug into production.

through clearance.

If you can do closer to a sure thing for $7 or $8 billion, suddenly it doesn't look too bad.

In Lilly's case, too, this is a proactive move to make sure that this does not become a one-hit wonder or a one-product company.

Right now, about 60% of Lilly's revenue comes from GLP-1s.

If anything, given all of the trials they have for different treatments, trying to get other GLP

treatments on label.

That's likely to only go up from here.

The nature of pharma is all good things come to an end.

You're constantly racing to stay ahead of a patent expiration cliff, investing in a prominent therapy outside of GLP-1s.

That makes a lot of sense, assuming their scientists think that there is a there here.

And I'm going to leave it to their scientists, not me, to say whether or not what they're buying really makes sense.

Apparently, they think so.

Yeah, so I am, due to family, for most of my career, I've been restricted by conflict of interest.

I can't.

So that's an easy answer for me.

But I will say this.

These are long-term projects.