More than 20 billions spent this year! Eli Lilly (LLY.US) CEO: We will target “white spaces” in pharmaceuticals and continue to pursue larger-scale mergers and acquisitions.

According to reports from Zhihu Finance APP, Eli Lilly (LLY.US) CEO Dave Ricks stated that investors can expect the company to pursue larger-scale deals, similar to its $7.8 billion acquisition of Centessa Pharmaceuticals Plc, as it is widely searching for assets in the "white space" within the scientific community.

Eli Lilly is now the world’s largest pharmaceutical company and is spending at a record pace, leveraging substantial profits from its weight-loss and diabetes injection drugs to expand into new fields that could drive its next phase of growth.

Thanks to its Mounjaro and Zepbound injections, as well as the weight-loss drug Foundayo, the company’s sales this year are expected to reach $88 billion—almost double what they were two years ago. However, the pharmaceutical industry’s relentless cycle—costly research, high-risk development, and a brief window to recoup investments through sales—never ceases. Ricks is determined to take action early to avoid the downward sales spiral that once caused trouble for previous industry leaders.

“We’re not feeling any sense of urgency,” Ricks said in an interview during a break at the European Association for the Study of Diabetes conference in Milan. Such urgency can force pharmaceutical companies into deals under financial pressure. “We call that ‘shopping when you’re hungry,' and that’s when you’re prone to making mistakes.”

Ricks highlighted infectious diseases, women’s health, and mental illness as areas where he believes Eli Lilly has opportunities to make an impact. Earlier this year, the company acquired three vaccine manufacturers for up to $3.8 billion and recently agreed to acquire psychedelic drug company AtaiBeckley Inc. for about the same amount.

Ricks said these deals are examples of Eli Lilly “taking slightly bigger steps,” and investors can expect to see more of this type of activity in the future. He pointed out that the company favors assets that, when more mature, can address entirely new challenges.

Reportedly, Eli Lilly’s Mounjaro and Zepbound still have about ten years of patent protection remaining. The company has always targeted drugs in the earlier stages of development, which are relatively less expensive. Ricks stated that he prefers to get involved before major data readouts and before any bidding processes begin.

“Our approach is to assess clinical data that isn’t fully mature and place bets before a company’s valuation hits $5 billion. At that point, the valuation might only be $500 million,” he said. “If we make enough smart bets, the returns are often substantial.”

He said this strategy allows Eli Lilly to nurture and grow pipeline projects internally before revenue pressures arise.

However, from recent deals, Eli Lilly appears willing to invest more in acquiring late-stage drugs to establish a competitive edge in markets beyond obesity. Additionally, Ricks has little interest in traditional methods of returning capital to shareholders.

“We face a choice: reinvest these returns in productive areas outside obesity, or buy back stock and pay dividends,” he said. “Investing in human health is much more interesting.”

Ricks revealed that the Indianapolis-based company has completed around 40 deals so far this year. According to compiled data, Eli Lilly’s total deal value so far this year has exceeded $20 billion, setting a new record for the company.