Eli Lilly, riding a wave of momentum with its weight-loss drugs Mounjaro and Zepbound, became the first pharmaceutical company in the world to hit US$1 trillion in market value on Friday.
The Indianapolis-headquartered company became the 11th most valuable company in the world when Eli Lilly shares rose 1.57 per cent on Friday to reach US$1,059.7, joining a select list dominated by tech companies.
The pharmacy major’s shares have gained more than 69 per cent in just over three months since August 7, when it was priced at US$625.65. The stock has seen more than 35 per cent rally this year.
Lilly’s shares have also far outpaced the broader US equity market. Since the launch of Zepbound in late 2023, it has gained more than 75 per cent, compared with an over 50 per cent rise in the S&P 500 over the same period.
Johnson and Johnson is the second biggest pharma company in the world, valued at US$491.26 billion, followed by AbbVie at US$417.6 billion.
Lilly reported total revenue of US$17.6 billion for the third quarter, and more than $10.1 billion – or 57.3 per cent – came from its obesity and diabetes portfolio.
Off this, Mounjaro contributed US$6.52 billion in revenue, a 109 per cent increase from the previous year, while Zepbound posted US$3.59 billion in sales, a 184 per cent jump from the prior-year period.
In October, the company lifted its annual revenue forecast by more than US$2 billion.
There is considerable anticipation among investors about Lilly’s oral obesity drug, orforglipron, which is expected to be approved early next year.
Novo Nordisk’s Wegovy and Ozempic had the early lead in the space, but Mounjaro and Zepbound have surged in popularity as Lilly capitalised on supply shortages of Novo’s Wegovy, as well as stronger clinical efficacy.
Novo Nordisk still remains a formidable rival for Eli Lilly in the space, while Pfizer, just this month, made a push forward in the market by acquiring obesity drugmaker Metsera after winning a US$10 billion bidding war with Novo.
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