Eli Lilly reached $1 trillion in market value this Friday, making it the first drug manufacturer to enter the exclusive club dominated by technology giants and underscoring its rise as a power in the weight loss sector.
The more than 35% rise in the company’s stock this year has been largely driven by the explosive growth of the weight-loss drug market.
The obesity treatmentsOnce considered a niche, they are now one of the most lucrative segments of healthcare, with demand constantly increasing.
Nordisk was a pioneer in this sector, but Lilly’s drugs (Mounjaro and Zepbound) have gained popularity and have helped eclipse its rival in the number of prescriptions.
The company’s shares improved 1.3% in the session, hitting an all-time high of $1,057.7.
Lilly now trades at one of the highest valuations among Big Pharma, about 50 times its expected earnings for the next 12 months, according to LSEG data, reflecting investor belief that demand for anti-obesity drugs will remain strong.
The stock has also far outperformed the broader U.S. stock market. Since the launch of Zepbound in late 2023, Lilly has gained more than 75%, compared to a rise of more than 50% in the S&P 500 in the same period.
In the last reported quarter, Lilly had combined revenue of more than $10.09 billion from its obesity and diabetes portfolio, representing more than half of its total revenue of $17.6 billion.
Wall Street estimates that the weight-loss drug market will be worth $150 billion by 2030, with Lilly and Novo together controlling most of the projected global sales.
