We also added Eli Lilly (LLY, Financial) to the Fund. Eli Lilly's core focus has historically included diabetes and central nervous system (CNS) and psychiatric treatments. In recent years, the company has diversified its business, adding immunology and oncology products. Margin expansion, driven by product mix shifts and management's commitment to improving the margin profile, is a key element of our investment thesis. We expect stability in Lilly's diabetes franchise despite new entrants to the market, and we believe the long-term potential for Jardiance, another Lilly diabetes product, is underestimated. In Lilly's immunology franchise, we expect strong sales growth over the next several years. We believe that recent oncology acquisitions will continue to bear fruit, and that the company's early-stage pipeline, particularly in oncology, is underestimated. We also find early-stage clinical trial data for the company's Alzheimer's disease therapy encouraging.
From Spiros Segalas (Trades, Portfolio)' Harbor Capital Appreciation Fund first-quarter 2021 commentary.
