TL/DR –
Pharmaceutical company Eli Lilly has reached a $1 trillion market capitalization, becoming the first healthcare company to do so. The company’s stock climbed more than 36% during the year, largely due to the success of its weight loss injection Zepbound and diabetes treatment Mounjaro. Both drugs have significantly boosted the company’s sales growth with Mounjaro generating $6.52 billion in revenue in Q3, a 109% increase from the previous year, and Zepbound posting sales of $3.59 billion during the same period, a 184% spike from the prior-year period.
Eli Lilly Hits $1 Trillion Market Cap, Joining Exclusive Club
The signage of Eli Lilly, a prominent pharmaceutical company, is displayed in Indianapolis, Indiana, as of March 17, 2024.
Eli Lilly achieved a $1 trillion market capitalization on Friday, making it the first health-care company to enter the exclusive trillion-dollar club, typically dominated by tech firms.
The pharmaceutical giant briefly peaked at the $1 trillion mark in morning trading before stabilizing around $1,048 per share. Eli Lilly is the second non-tech company in the U.S., after Warren Buffett‘s Berkshire Hathaway, to hit this esteemed benchmark.
Eli Lilly’s popular weight loss injection Zepbound and diabetes treatment Mounjaro fueled the company’s stock climb, which has surged by over 36% this year. The company has capitalized on its gains against rival Novo Nordisk in the GLP-1 drug market.
Eli Lilly anticipates growing demand for its treatments as approvals expand and insurance coverage broadens. The company also expects an oral version of its drugs to hit markets next year, offering a more convenient option for patients.
Analysts predict that Eli Lilly will continue to dominate the weight loss drug market, which could exceed $150 billion by the early 2030s. Despite its recent challenges, Novo Nordisk remains a formidable rival. Pfizer also ventured into this market, winning a$10 billion bidding war for obesity drugmaker Metsera.
Eli Lilly: Success Rooted in Zepbound and Mounjaro
Eli Lilly, a Union veteran of the U.S. Civil War, established his eponymous company in 1876. The company introduced the world’s first commercial insulin in 1923 and became publicly traded in 1952.
Following the approval of its diabetes drug Mounjaro in May 2022, Eli Lilly began competing with Novo Nordisk’s Ozempic. Unlike Ozempic, Mounjaro mimics two gut hormones—GLP-1 and GIP—which help regulate appetite and sugar and fat breakdown. Mounjaro achieved blockbuster status in its first year, with sales exceeding $1 billion. Eli Lilly then launched its obesity treatment, Zepbound, in 2023. By 2024, Mounjaro pulled in $11.54 billion in sales, while Zepbound posted $4.93 billion in revenue.
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