Eli Lilly & Co (NYSE: LLY) Chief Executive Dave Ricks said investors can expect the company to pursue larger deals, similar to its $7.8 billion acquisition of Centessa Pharmaceuticals Plc, as it casts a wide net for assets in the "white spaces" of science.

Eli Lilly is now the world's largest pharmaceutical company and is spending aggressively at a record pace, using the rich proceeds from its weight-loss and diabetes injectables to expand into new areas 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 are expected to reach $88 billion this year, nearly double the level of two years ago.

Yet the brutal cycle of the pharmaceutical industry — expensive research, high-risk development and a short sales window to recoup investment — never lets up. Ricks is determined to act early to avoid the spiraling sales declines that have trapped previous industry leaders.

"We don't have a sense of urgency," Ricks said in an interview on the sidelines of the European Association for the Study of Diabetes annual meeting in Milan. That sense of urgency would force drugmakers to strike deals under financial pressure. "We call that 'shopping hungry,' and that makes it easy to make mistakes."

Ricks highlighted infectious diseases, women's health and mental illness as areas where he believes Eli Lilly has an opportunity to make an impact. The company acquired three vaccine makers earlier this year for as much as $3.8 billion, and recently agreed to buy psychedelics company AtaiBeckley Inc. for roughly the same amount.

Ricks said these deals are examples of Eli Lilly "taking slightly bigger steps," and investors will see more of these moves in the future. He noted that the company prefers more mature assets when they can solve entirely new problems.

It is understood that Eli Lilly's Mounjaro and Zepbound still have about a decade of patent protection. The company has historically targeted earlier-stage, relatively lower-priced drugs. Ricks said he prefers to step in before major data readouts and before any bidding process begins.

"Our thinking is to assess clinical data that is not yet fully mature and place bets before the company's valuation reaches $5 billion. At that point the target may be valued at only $500 million," he said. "If we make enough smart bets, the returns are often quite substantial."

He said this strategy allows Eli Lilly to cultivate pipeline programs internally and grow them before revenue pressure arrives. Still, recent deals show Eli Lilly is willing to commit more money to acquire late-stage drugs, building a competitive advantage in markets beyond obesity.

In addition, Ricks has little interest in the traditional ways of returning capital to shareholders. "We face a choice: reinvest those returns in productive areas outside obesity, or buy back shares and pay dividends," he said. "Investing in human health is much more interesting."

Ricks disclosed that the Indianapolis-based company has completed about 40 deals so far this year. According to compiled data, Eli Lilly's total deal value so far this year has exceeded $20 billion, the highest on record for the company.