Big Pharma Hits a Trillion-Dollar Jackpot
Eli Lilly Hits $1 Trillion Milestone
Eli Lilly, a giant in the pharmaceutical industry, has achieved a historic milestone by becoming the first healthcare company to reach a market value of $1 trillion. Although the stock briefly hit this mark during trading, it settled slightly lower, with each share priced around $1,048.
The Driving Force Behind the Growth
The company's meteoric rise can be attributed to two blockbuster drugs:
- Mounjaro (for diabetes)
- Zepbound (for weight loss)
Mounjaro alone generated $6.52 billion in the third quarter, more than double its earnings from the previous year. Zepbound followed closely with $3.59 billion in sales, marking an impressive 184% increase year-over-year.
Competition in the Market
Eli Lilly isn't the only player in this lucrative market. Novo Nordisk, known for Ozempic and Wegovy, is also making significant strides. Pfizer has entered the fray by acquiring Metsera, a company specializing in obesity drugs.
A Legacy of Innovation
Founded in 1876, Eli Lilly has a rich history in medical breakthroughs. The company introduced the world's first commercial insulin in 1923 and has since developed other notable drugs like Prozac and a polio vaccine.
Recent Success and Future Plans
Eli Lilly's recent success began in May 2022 with the approval of tirzepatide, marketed as Mounjaro. Later, in late 2023, the same drug received approval for obesity under the name Zepbound. By 2024, Mounjaro had generated $11.54 billion in sales, while Zepbound brought in $4.93 billion.
The company plans to release an oral version of their weight-loss drug next year, potentially making treatment more convenient for patients. Analysts predict the global weight-loss drug market could be worth over $150 billion by the early 2030s.
