Pharma giant Eli Lily LLY, known for its blockbuster diabetes and obesity therapeutics, has recently taken a massive strategic pivot into preventive medicine by announcing simultaneous acquisition agreements with three privately held vaccine developers — Curevo, LimmaTech Biologics and Vaccine Company. This deal, with a combined value worth nearly $4 billion, thrusts LLY directly into the lucrative global vaccine market.
This decisive move by Eli Lily into a new healthcare vertical should provide the pharma giant and healthcare exchange-traded funds (ETFs) holding LLY with an additional revenue stream beyond its blockbuster obesity drugs.
Against this backdrop, investors seeking to capitalize on Eli Lily’s strategic pivot should first examine the rationale behind the pharma giant’s expansion into the vaccine market before exploring the ETFs positioned to benefit from the move.
Why Lily Is Expanding Into Vaccines
Eli Lily’s sudden move is a calculated masterstroke focused on long-term health economics. As per Fortune Business Insights, the global vaccines market, valued at approximately $88.9 billion in 2025, is projected to grow to $95.6 billion in 2026 and surpass $211 billion by 2034, representing a compound annual growth rate of more than 10%.
LLY, which has historically been absent from the vaccine market, is aiming to capture a meaningful share of this capital influx through its latest acquisitions.
Vaccine Company’s lead asset is a candidate for the Epstein-Barr Virus (“EBV”) — a widespread pathogen heavily linked to multiple sclerosis and several aggressive cancers. By acquiring this platform, Lily positions itself to potentially bring the first preventive Epstein-Barr virus (EBV) vaccine to market, directly challenging competitors such as Moderna MRNA, whose mRNA-based alternatives are still in development.
LimmaTech’s lead program, LTB-SA7, an experimental multivalent vaccine designed to prevent Staphylococcus aureus infections, a leading cause of surgical-site complications and hospital-acquired antimicrobial resistance. With Pfizer PFE recently abandoning its own staph vaccine program, LimmaTech’s FDA Fast Track designation gives Lily a clear runway to capture a massive, wide-open first-mover market.
On the other hand, Curevo’s lead asset, amezosvatein, is a next-generation shingles vaccine that demonstrated immune protection comparable to GSK’s blockbuster Shingrix while showing a significant 50% reduction in moderate-to-severe side effects during Phase 2 trials..
Through these recent acquisitions, Eli Lily aims not only to diversify its revenue base beyond its blockbuster weight-loss drugs but also to establish a meaningful presence in the vaccine market with potentially differentiated products. The strategy could strengthen the company’s competitive positioning against rivals that are already well established in the vaccine space. For investors, the move reinforces the long-term growth outlook for LLY.
3 Healthcare ETFs to Buy to Capitalize on Lily’s Vaccine Push
In light of the points outlined above, betting on individual biotech pipelines carries immense clinical trial risk. A potentially safer approach is to invest in the broader healthcare landscape through the ETFs highlighted below. This enables investors to gain exposure to Lily’s vaccine-related momentum while hedging against the possibility of setbacks tied to any single drug program.
iShares U.S. Pharmaceuticals ETF IHE
This fund, with net assets of $921.1 million, provides exposure to 55 U.S. pharmaceutical companies, including major drug manufacturers and vaccine producers. LLY holds the first position in this fund, with 23.67% weightage.
IHE has soared 42.3% over the past year. The fund charges 38 basis points (bps) as fees and holds a Zacks ETF Rank #2 (Buy).
State Street Health Care Select Sector SPDR ETF XLV
This fund, with assets under management worth $38.66 billion, offers exposure to 60 companies from the following sub-industries: health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology industries. LLY holds the first position in this fund, with 16.37% weightage.
XLV has gained 13.8% over the past year. The fund charges 8 bps as fees and sports a Zacks ETF Rank #1 (Strong Buy).
Vanguard Health Care Index Fund ETF VHT
This fund, with net assets of $16.1 billion, provides exposure to 405 companies involved in manufacturing healthcare equipment and supplies, delivering healthcare-related services, and researching, developing, producing and marketing pharmaceutical and biotechnology products. LLY holds the first position in this fund, with 12.13% weightage.
VHT has risen 15.8% over the past year. The fund charges 9 bps as fees and sports a Zacks ETF Rank #1.
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Pfizer Inc. (PFE): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
Moderna, Inc. (MRNA): Free Stock Analysis Report
State Street Health Care Select Sector SPDR ETF ETF (XLV): ETF Research Reports
Vanguard Health Care Index Fund ETF Shares (VHT): ETF Research Reports
iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).