Eli Lilly flies the pharma flag in tech-heavy $1tn market cap club

Core Insights - Eli Lilly has achieved a market capitalisation of $1 trillion, becoming the first healthcare company to reach this milestone, previously dominated by technology firms [1][2] - The surge in Eli Lilly's market value is primarily driven by the unprecedented demand for its weight loss drugs, particularly tirzepatide [1][4] Financial Performance - Eli Lilly's share price closed at $1,059.70 on November 21, reflecting a 27% increase since January 2025, although it slightly retreated to $1,056.77 by November 24 [2] - The S&P 500 pharmaceutical index has risen by 19% since the beginning of September, indicating a growing investor interest in pharmaceutical stocks [3] Product Success - Tirzepatide, marketed as Zepbound and Mounjaro, has significantly contributed to Eli Lilly's success, with Mounjaro generating $6.5 billion in Q3 2025, a 109% increase from Q3 2024, and Zepbound achieving $3.6 billion, up 185% from the same period [4][5] - GlobalData forecasts that the combined sales of Zepbound and Mounjaro will reach $64 billion by 2031 [5] Competitive Landscape - Tirzepatide's growth has positioned Eli Lilly ahead of its main competitor, Novo Nordisk, which has seen a decline in share prices despite being first to market with semaglutide [6] - Tirzepatide's dual-action mechanism offers better efficacy compared to semaglutide, contributing to its market success [6] - The sales performance of tirzepatide has surpassed that of MSD's Keytruda, which has been the top-selling drug globally in recent years [7]