Healthy Returns: Eli Lilly could soon become the first $1 trillion health-care stock
LillyLilly(US:LLY) CNBC·2024-09-05 18:47

Core Insights - Eli Lilly is poised to become the first healthcare company to reach a market value of $1 trillion, driven by the strong demand for its weight loss drug Zepbound and diabetes medication Mounjaro, which together account for nearly 40% of the company's total sales [1][2]. Company Performance - Eli Lilly's shares have increased by over 60% this year, bringing its market value close to $900 billion [3]. - The company experienced a nearly 10% stock surge on August 8 following second-quarter results that exceeded Wall Street expectations [3]. Market Position - Eli Lilly is one of the two leading players in the weight loss drug market, which is projected to reach a value of $150 billion by the end of the decade [2]. - The company is reportedly gaining an edge over its main competitor, Novo Nordisk, as it progresses in expanding the supply of its drugs [2]. Future Prospects - Eli Lilly is expected to release significant data and seek regulatory approvals that could further enhance its stock performance, including a decision from the FDA on Zepbound for sleep apnea by year-end [3]. - The company may also present data from a late-stage trial comparing Zepbound with Novo Nordisk's Wegovy by the end of the year [3].