United States-based drugmaker Eli Lilly on 21 November 2025, became the first pharmaceutical company and only the second non-technology firm, to enter the trillion-dollar market capitalisation club after its stock price rose 1.7%.
In the early US stock market session, shares of the pharma giant jumped 1.7% to hit an intraday high of $1,061.17, compared to $1,043.29 at the previous market close, according to MarketWatch data.
“At a trillion, it’s two times as big as the second biggest company in health care. That’s an incredible situation for them,” Jared Holz, a strategist at Mizuho Securities USA LLC told Bloomberg.
Why did Eli Lilly’s stock gain?
The jump came as Wall Street pundits and investors bet big on the drugmaker’s GLP-1s medicines, used to treat obesity and diabetes, along with its next generation weight-loss pill in the market projected to reach $95 billion by 2030, as per a Bloomberg report.
After its shares fell in May due to high tariffs (imposed by US President Donald Trump), and setbacks to its weight-loss drug Zepbound (drug benefit manager CVS Health Corp. dropped Zepbound from its list of preferred drugs and replaced it with Novo Nordisk A/S’s Wegovy), since September, the stock has gained.
Its better-than-expected Q3 earnings, raised outlook and a deal with the Trump administration, helped propel it to new heights, the report added. In 2025, Eli Lilly shared have risen 37% so far, after a 32% rally in 2024.
Why are the investors betting on Eli Lilly?
Investors are doubling down on the drugmaker to maintain its pole position in the weight-loss drugs market. Data so far has shown the maker beat its Danish competitor Novo Nordisk in obesity drug performance.
A one-on-one comparison between Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy in May 2025 showed that the former’s experimental pill helped patients shed weight and control blood sugar about as well as Ozempic in a separate trial. And while Zepbound sales have topped Wall Street’s expectations so far this year, Novo has had to trim its annual forecast four times amid lagging sales.
In its most recent quarterly results, the US drugmaker said that its GLP-1 drugs now account for almost 58% of that market, which includes Novo’s Ozempic and Wegovy.
“When you look at what they’ve done side by side against Novo, which had the early lead in obesity, to come in and take basically two thirds of new market share within two years is kind of incredible. In terms of their execution, it’s been consistently good,” Holz added.
Next invetors are keen on the company’s easy-to-swallow pill that’s less expensive to make. Approval for it from the US Food and Drug Administration (US FDA) is expected in early 2026 and the firm has bulked up supply ahead of a potential launch.
Citi’s Geoff Meacham, who estimates annual sales for the pill will peak at more than $40 billion, assigned Lilly a $1,500 price target last week — the highest on Wall Street, as per the report. “Lilly’s domination of the category should accelerate,” Meacham wrote. His price target suggests the company’s market value would top $1.4 trillion over the next 12 months.
Eli Lilly working on experimental drugs
To keep its market lead, Eli Lilly is conducting studies of tirzepatide — the chemical compound in Zepbound — in related health conditions like liver disease, heart failure and immunological diseases. The company is also examining its experimental obesity pill, orforglipron, in hypertension and sleep apnea.
Mizuho’s Holz sees further upside for Lilly shares if the company continues to find growth drivers, whether in its obesity franchise or its Alzheimer’s program, the report added. “Is it possible that in three, four, five years, this is a $2 trillion company? Sure, very possible.” Holz said.
