Lilly becomes first drugmaker to hit $1 trillion valuation on weight-loss demand

Core Insights - Eli Lilly has reached a market value of $1 trillion, becoming the first drugmaker to achieve this milestone, primarily due to its success in the weight-loss drug market [1] - The company's stock has increased by over 35% this year, driven by the rapid growth of obesity treatments [1] Group 1: Market Performance - Sales of Lilly's tirzepatide, marketed as Mounjaro and Zepbound, have surpassed Merck's Keytruda, making it the world's best-selling drug [2] - Lilly's stock briefly hit a record high, trading nearly 1% higher at $1,051 [3] - The company trades at a valuation of about 50 times its anticipated earnings over the next 12 months, indicating strong investor confidence in the demand for obesity drugs [4] Group 2: Competitive Landscape - Lilly has gained market share partly due to supply shortages that hampered Novo Nordisk's Wegovy launch in 2021 [3] - Lilly's drugs have demonstrated stronger clinical efficacy, and the company has been quicker to scale manufacturing and distribution [3] - Since the launch of Zepbound in late 2023, Lilly's shares have increased by more than 75%, compared to a 50% rise in the S&P 500 [4] Group 3: Financial Performance - In the latest quarter, Lilly reported combined revenue of over $10.09 billion from its obesity and diabetes portfolio, which accounted for more than half of its total revenue of $17.6 billion [5] - Lilly raised its annual revenue forecast by over $2 billion due to surging global demand for its obesity and diabetes drugs [6] Group 4: Market Outlook - The weight-loss drug market is projected to be worth $150 billion by 2030, with Lilly and Novo expected to control the majority of global sales [6] - Investors are now focused on Lilly's oral obesity drug, orforglipron, which is anticipated to receive approval early next year [6]