Eli Lilly (LLY -2.02%), a juggernaut on the stock exchange with a $700 billion-plus market capitalization, has a lot going for it these days that should encourage investors. After all, its products are at the forefront of treating diabetes and weight loss.

But one thing investors shouldn't expect are huge share buybacks by the company. After all, the pharmaceutical sector requires heavy capital expenditures at times. New products must be developed, and the larger companies need to maintain and even expand their manufacturing facilities.

This is a key reason why Eli Lilly's spend on repurchasing its own stock has been relatively modest.

Not a big spender given its size

Throughout 2023, Lilly spent $750 million on repurchasing its own shares. While a high nine-figure number is hardly anything to sneeze at, it's low when placed against some of the pharmaceutical giant's other key metrics. There's that market cap figure, of course, plus the $4.2 billion in operating cash flow for the year, not to mention the over $34 billion in revenue the company booked.

Interestingly, that $750 million was spent entirely in the first quarter of 2023. The company expended exactly $0 on buybacks in each of the following three quarters.   So while Lilly does do share buybacks, it prefers to energize its stock the old-fashioned way -- developing and selling popular drugs. It's telling that the Q1 2023 repurchases were made under an authorization (of $5 billion in total) granted in May 2021.

Zepbound for glory?

The latest big-headline news from Lilly, and a key element in its high popularity lately, is the U.S. Food and Drug Administration's approval of Zepbound -- its Mounjaro diabetes treatment repurposed for weight loss. Thanks to Lilly's size and prominence, Zepbound immediately became a major product for weight-loss therapy, a potentially huge market that is only in its infancy.

Zepbound is a direct result of Lilly's strategy to prioritize capex on drug development, marketing, and associated expenses. So far, it's worked quite well, and we can expect more interest in the stock as Zepbound's sales climb.