Eli Lilly (LLY 2.22%) is growing very quickly right now thanks to Mounjaro and Zepbound, its two GLP-1 drugs, the latter of which is approved for weight loss. Mounjaro's sales rose 99% in 2025, and Zepbound's sales were up a shocking 175%.
But these two drugs accounted for almost all of Lilly's top-line growth last year. That's a problem in the making -- and why you might want to consider an out-of-favor alternative like high-yielding Pfizer (PFE 1.61%).
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Eli Lilly is priced for perfection
It's great news that Eli Lilly is leading the pack in the newly developed GLP-1 drug niche. However, the company has very quickly become a one-trick pony. As noted, Mounjaro (used to treat diabetes) and Zepbound are the company's primary growth drivers right now. And those two drugs accounted for 56% of the top line in 2025, which is a bit troubling.
Given the nature of the drug space, Mounjaro and Zepbound will eventually face generic competition. When that happens, their revenue and profits will materially decline. There's time before that happens, but don't count out Lilly's competitors. Many of its peers are looking for GLP-1 drugs that can unseat their dominant rival.
NYSE: LLY
Key Data Points
Meanwhile, Wall Street has bid Eli Lilly's shares up to the point where the price-to-earnings (P/E) ratio is a lofty 45, and the dividend yield is a paltry 0.6%. If the company's GLP-1 dominance falls short of perfection, there could be material downside risk.
Pfizer might be a better option for you
Pfizer's internally developed GLP-1 drug failed to work out. Drug failures aren't uncommon in the pharmaceutical sector. But that misstep, coupled with upcoming patent expirations, has investors deeply worried about Pfizer's future.
On the other hand, the company recently stated that it plans to support the dividend at its current level as it works through its headwinds. The stock currently offers a lofty 6.3% yield, and (compared to Lilly) has a far more reasonable P/E ratio of around 20.
NYSE: PFE
Key Data Points
That said, the real reason to buy Pfizer is what happened after its GLP-1 drug setback. The company quickly acquired a biotech with a promising GLP-1 drug candidate, and then inked a distribution partnership with another pharma company developing a GLP-1 pill.
Essentially, Pfizer is proving it has the wherewithal to survive and thrive over the long term. Given that and the statement made in support of the dividend, long-term income investors should probably take the time to research this unloved pharma stock today. If history is any guide, Pfizer will eventually get back into Wall Street's good graces.
