Eli Lilly is on the verge of making history as the first health-care company to reach a $1 trillion market value, driven by the explosive demand for its weight loss drug Zepbound and diabetes medication Mounjaro. These incretin-based treatments, which help regulate appetite and blood sugar, now account for nearly 40% of the company’s total sales, according to its second-quarter results.
Eli Lilly is one of the two leading players in the booming weight-loss drug market, which some analysts estimate could grow to $150 billion by the end of this decade. While its main competitor, Novo Nordisk, is also investing in expanding supply, Eli Lilly appears to be pulling ahead. In contrast, Novo Nordisk’s drugs, Wegovy and Ozempic, missed second-quarter sales expectations partly due to pricing pressures in the U.S.
Investors are optimistic about Eli Lilly’s growth potential, fueled by additional health benefits tied to its treatments. Zepbound has shown promise in treating obesity-related conditions such as obstructive sleep apnea, fatty liver disease, and cardiovascular disease, broadening the drug’s market potential.
Eli Lilly’s stock has surged more than 60% this year, bringing its market value to nearly $900 billion. The company’s shares jumped almost 10% on August 8, following second-quarter earnings that exceeded Wall Street’s expectations. With the company scheduled to report third-quarter results on October 30, another strong performance could push Eli Lilly closer to the $1 trillion milestone.
Further stock gains could come from regulatory approvals and new data. Eli Lilly is awaiting an FDA decision on whether to approve Zepbound for treating sleep apnea by the end of the year. Additionally, late-stage trial results comparing Zepbound with Novo Nordisk’s Wegovy are expected, potentially boosting investor confidence.
As Eli Lilly continues to expand its presence in the weight-loss market, it edges closer to joining the exclusive $1 trillion market value club.
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