Is LLY (Eli Lilly and Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LLY is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (4.36% vs ≤33% threshold), interest income ratio (0.24% vs ≤5% threshold), and cash & securities ratio (0.75% vs ≤33% threshold).

Eli Lilly and Company is a global pharmaceutical giant primarily known for its dominance in diabetes care and oncology. The company discovers and markets essential medications such as Humalog and Trulicity for diabetes management , as well as Alimta for lung cancer treatment. Their pipeline is heavily focused on developing breakthrough therapies for Alzheimer's disease and obesity, positioning them as a critical player in modern healthcare innovation. For Muslim investors, Eli Lilly represents a straightforward Halal investment opportunity, having passed all four AAOIFI screening criteria. The company's core business of healing and medicine production is inherently permissible (Halal) and serves a clear benefit to society (Maslahah). Because it passes the business activity screen without any major ethical caveats, investors can be confident that the primary source of wealth generation here is shariah- compliant. Financially, LLY is exceptionally robust from an Islamic perspective, maintaining very low leverage ratios compared to its massive market capitalization. With interest-bearing debt at only 4.4% and cash/securities at 0.7%, it sits comfortably below the 33% thresholds that often disqualify other large firms. Furthermore, its interest income is minimal at 0.24%, meaning the purification requirements for dividends would be virtually non-existent for most investors. Investors should simply continue to monitor the company's financial health, specifically if they take on significant debt for future acquisitions. However, given their current trajectory and strong cash flow from blockbuster drugs, LLY remains a high -quality, low-risk option within a Halal portfolio. Eli Lilly and Company operates in the Healthcare sector under the Drug Manufacturers - General industry and is headquartered in Indianapolis, IN, US. The company is led by CEO David A. Ricks and employs approximately 47,000 people.

LLY was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LLY passed 4 of these 4 screens.

Although LLY passes all shariah screens, it does earn $153.3M in interest income (0.24% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.24 to purify the income.

LLY was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.