Eli Lilly has entered a new era of influence and scale, becoming the first pharmaceutical company to reach a $1 trillion market valuation. The milestone places the Indianapolis-based firm in a category long dominated by major technology players and reflects the explosive rise of a business built on groundbreaking treatments for obesity and diabetes. Lilly’s rapid ascent has been fueled by the extraordinary performance of its GLP-1 drug portfolio, led by Mounjaro for type 2 diabetes and Zepbound for obesity.
Over the past year, Lilly’s stock has climbed more than 35%, outpacing the broader market and eclipsing the gains of many leading tech names. Since the launch of Zepbound in late 2023, shares have advanced more than 75%, compared with an already strong rise in the S&P 500. Investor enthusiasm stems largely from the company’s ability to dominate one of the fastest-growing categories in healthcare. Demand for modern obesity medicine continues to surge, and Lilly has been able to scale its manufacturing, expand distribution, and deliver strong clinical results with speed unmatched by most of its peers.
The company’s GLP-1 treatments have quickly become global bestsellers. Combined revenue from its obesity and diabetes offerings surpassed $10 billion in the most recent quarter, more than half of Lilly’s total sales. Mounjaro alone brought in $6.52 billion in the third quarter, more than doubling its performance from a year earlier. Zepbound generated $3.59 billion during the same period, showing an even steeper year-over-year climb. These gains have allowed Lilly to overtake Merck’s Keytruda as the world’s top-selling medicine.
Lilly’s rise is also tied to its ability to outmaneuver Novo Nordisk, the long-standing leader in metabolic health. Novo’s Wegovy rollout in 2021 was hindered by supply challenges, opening the door for Lilly to move quickly. With stronger trial outcomes and manufacturing capacity that expanded at the right moment, the company gained ground in prescriptions and mindshare. Analysts now view Lilly as the preferred investment in a market projected to reach $150 billion globally by 2030.
Investors are particularly focused on the company’s next major step: a potential oral obesity therapy, orforglipron, expected to be approved early next year. Analysts at Citi have described the latest generation of GLP-1 drugs as a “sales phenomenon,” and an oral option could introduce a more convenient path for millions of patients, further accelerating market growth.
Policy developments are also shaping the company’s outlook. A pricing agreement with the Trump administration may place temporary pressure on revenue, but the expanded access it provides could open the door to as many as 40 million additional U.S. patients. That wider pool of candidates may help Lilly maintain its momentum even as competition intensifies and pricing pressures grow.
With a deep pipeline, strong manufacturing commitments, and broadening acceptance of chronic weight management therapies, Eli Lilly appears well-positioned to remain a dominant force in healthcare. The company’s challenge now is to sustain its pace and navigate a rapidly evolving market that it helped create.
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