US: Eli Lilly has surged past the one trillion-dollar mark in market value, becoming the first pharmaceutical company to join a club long dominated by global technology giants.
The milestone caps a remarkable run powered by explosive demand for the firm’s new generation of weight-loss drugs. Lilly’s stock has jumped more than 35 percent this year, driven by the soaring popularity of its treatments Mounjaro and Zepbound. Once seen as a narrow specialty, obesity drugs have transformed into one of the most lucrative segments in global healthcare, with prescriptions climbing at a rapid pace. The rally pushed Lilly’s shares to a record high of 1,057.70 dollars on Friday.
With this surge, the company now trades at one of the highest valuations in big pharma, roughly 50 times its projected earnings over the next year, according to LSEG data. The valuation reflects investors’ confidence that demand for obesity medicines will remain exceptionally strong.
The firm’s performance has also outpaced the broader US stock market. Since the launch of Zepbound in late 2023, Lilly’s shares have risen more than 75 percent, far ahead of the S&P 500’s gains over the same period.
In its latest quarterly results, Lilly reported more than 10.09 billion dollars in combined revenue from its obesity and diabetes treatments, accounting for over half of its total revenue of 17.6 billion dollars. Investors say these medicines have become the dominant force behind the company’s rise, even though Lilly continues to grow across several other therapeutic areas.
Analysts expect the global market for weight-loss drugs to reach 150 billion dollars by 2030, with Lilly and rival Novo Nordisk projected to command the majority of sales. All eyes are now on Lilly’s oral obesity candidate, orforglipron, which is widely anticipated to receive approval early next year.
The latest generation of GLP-1 medicines has already delivered extraordinary sales, and said orforglipron is likely to build on the success of its injectable predecessors. Lilly’s recent agreement with the White House to reduce prices for its weight-loss drugs, combined with major investments to expand production capacity, has also strengthened its outlook.
Some market experts say Lilly is beginning to resemble the so-called Magnificent Seven once again, a reference to the group of seven US tech giants that have propelled much of the market’s gains in the past year. After briefly falling out of investor favour, the company now appears on the verge of rejoining that elite circle, particularly as concerns grow over weakening momentum in some AI-linked stocks.
