Eli Lilly Becomes First Drugmaker to Reach $1 Trillion Market Value

INDIANAPOLIS, Indiana – Eli Lilly made history on Friday, reaching a market value of $1 trillion, becoming the first drugmaker to join this exclusive group often dominated by technology companies. This milestone underscores the company’s rapid growth as a major player in the weight-loss drug market.

The surge in Lilly’s stock, which has risen over 35% this year, has been fueled largely by escalating demand for its obesity treatments. The drugmaker’s tirzepatide, available as Mounjaro and Zepbound, has now surpassed Merck’s Keytruda as the world’s best-selling drug.

The market for obesity drugs has evolved into one of the most lucrative fields in healthcare. Analysts cite that the total value of this market could reach $150 billion by 2030, with Lilly and its competitor Novo Nordisk controlling most of those sales.

Mounjaro and Zepbound have gained popularity partly because Novo Nordisk’s launch of Wegovy in 2021 faced supply chain issues, giving Lilly room to capture market share. For the latest quarter, Eli Lilly reported a record revenue of more than $10.09 billion from its obesity and diabetes line, contributing to over half of its total revenue of $17.6 billion.

Evan Seigerman, an analyst at BMO Capital Markets, noted, ‘The current valuation reflects investor confidence in Lilly’s metabolic health franchise and suggests a preference for Lilly over Novo in the obesity arms race.’

Lilly’s shares briefly hit a high of $1,057.70 during trading before settling. Currently, the stock is valued about 50 times its anticipated earnings for the coming year, given the expectations for continued strong demand for obesity treatments.

Looking forward, investors are eager to see the approval of Lilly’s oral obesity drug orforglipron, expected early next year. Citi analysts mentioned that the latest generation of GLP-1 drugs has already established itself as a ‘sales phenomenon,’ indicating that orforglipron may also succeed due to the groundwork laid by its injectable counterparts.

James Shin, director of Biopharma Equity Research at Deutsche Bank, suggested that Eli Lilly is beginning to resemble the ‘Magnificent Seven’—the tech giants who have driven market growth this year. While Lilly once faced challenges that cost it investor favor, the company appears poised for a comeback.

As Lilly continues to expand its reach within the weight-loss drug market, its performance will be closely watched, especially as market prices for Mounjaro and Zepbound are expected to come under pressure.