Does This $856 Million Investment Make Eli Lilly Stock a Buy?

Success often breeds success. Highly profitable companies have more capital to reinvest in the business and pursue high-growth opportunities.Take Eli Lilly (NYSE: LLY), a pharmaceutical giant that has been performing well in recent years. The drugmaker is not resting on its laurels. Lilly has been signing deals and looking for the next big thing. It recently penned an agreement worth nearly $1 billion in another promising potential avenue. Let's find out what that is and whether it makes the company's shares more attractive.On July 24, Gate Biosciences, a privately held biotech, announced it had signed an agreement with Eli Lilly to co-develop a potential new class of drugs called "Molecular Gates." Gate Biosciences received an up-front payment of an undisclosed amount and will be eligible for milestone payments and potential future royalties, in a deal valued at about $856 million, which also includes an equity investment for Gate.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool