GLP-1 megatrend sends Eli Lilly to $1 Trillion valuation

Eli Lilly became the first health-care company to reach a $1 trillion market value on Friday.

The stock gained about 1% on Monday and held above the threshold. It is the second U.S. nontechnology company to hit that level after Berkshire Hathaway.

The milestone came as shares of Novo Nordisk fell around 6% in U.S. trading. The drop followed weak Alzheimer’s trial results and heavy market share losses in obesity and diabetes drugs.

Novo Nordisk’s stock has slid nearly 45% this year. Eli Lilly’s shares have risen more than 37% over the same period.

Demand for Eli Lilly’s weight loss drug Zepbound and diabetes treatment Mounjaro has powered the surge. Both medicines remain in high demand as new approvals and broader insurance coverage expand access.

Mounjaro generated $6.52 billion in third-quarter revenue, up 109% from a year earlier. Zepbound brought in $3.59 billion, an increase of 184% from the prior year.

Eli Lilly expects demand to keep rising. The company plans to introduce an oral version of its treatments next year, offering a more convenient option for patients and an easier product to manufacture.

Analysts project the weight loss drug market could exceed $150 billion by the early 2030s. Eli Lilly is widely seen as a dominant force in the sector.

Novo Nordisk remains a significant competitor despite recent setbacks. Pfizer also advanced its position after winning a $10 billion bidding battle with Novo Nordisk for obesity drugmaker Metsera earlier this month.

Eli Lilly was founded in 1876 and introduced the first commercial insulin in 1923. It became publicly traded in 1952 and grew through products such as insulin, Prozac and an early polio vaccine.

The company’s momentum accelerated after the 2022 approval of tirzepatide for diabetes, sold as Mounjaro. The drug competes with Novo Nordisk’s Ozempic but uses a dual-hormone approach involving GLP-1 and GIP.

Mounjaro reached blockbuster status in its first full year. Its late-2023 approval for obesity, sold as Zepbound, extended Eli Lilly’s lead in the fast-growing market.

By 2024, Mounjaro recorded $11.54 billion in sales. Zepbound generated $4.93 billion in revenue during the same year.