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Eli Lilly (LLY) and Company made history on Friday, November 21, 2025, becoming the first healthcare company to achieve a $1 trillion market capitalization. The pharmaceutical giant briefly crossed this milestone during morning trading, joining an exclusive club previously dominated by technology companies like Apple AAPL, Microsoft MSFT, and Nvidia NVDA.

This achievement underscores Eli Lilly’s remarkable transformation into a weight-loss drug powerhouse, driven primarily by the explosive success of its obesity treatment Zepbound and diabetes medication Mounjaro.

LLY Stock Hits $1T Mark as Investors Bet on Long-Term Drug Demand

Eli Lilly’s stock price reached approximately $1,050.59 per share as of 10:48 AM EST on November 21, 2025, marking a gain of $7.30 or 0.70% for the day. The company’s market capitalization stood at approximately $941.8 billion according to Yahoo Finance data, with the stock briefly touching the $1 trillion threshold during intraday trading before settling slightly below.

This represents a remarkable year-to-date rally of more than 37%, significantly outperforming the S&P 500’s 11.34% gain over the same period.

The Indianapolis-based drugmaker’s five-year returns paint an even more dramatic picture of its growth trajectory. Eli Lilly shares have surged an astounding 660.93% over the past five years, compared to the S&P 500’s 84.08% return during the same period.

Since the launch of Zepbound in late 2023, the company’s stock has gained more than 75%, while the broader market rose just over 50%. Wall Street analysts remain bullish on the stock, with an average price target of $1,012.19 and a high target of $1,500, suggesting continued confidence in the company’s growth prospects.

The company’s financial metrics reflect its premium valuation in the pharmaceutical sector. Eli Lilly currently trades at a trailing price-to-earnings ratio of 51.37 and a forward P/E of 33.11, among the highest valuations in big pharma.

This rich valuation reflects investors’ belief that demand for obesity medications will remain robust for years to come. The company reported total revenue of $59.42 billion over the trailing twelve months, with a profit margin of 30.99% and net income of $18.41 billion.

Weight-Loss Drug Dominance Drives Growth

The primary catalyst behind Eli Lilly’s historic valuation is the runaway success of its GLP-1 drugs Mounjaro and Zepbound. In its most recent quarterly results, the company reported combined revenue exceeding $10.09 billion from its obesity and diabetes portfolio alone, representing more than half of its total quarterly revenue of $17.6 billion.

Mounjaro, approved for diabetes treatment in May 2022, achieved blockbuster status during its first full year on the market by generating over $1 billion in annual sales. The subsequent approval of tirzepatide as an obesity treatment under the brand name Zepbound has further accelerated the company’s growth.

Eli Lilly has gained significant ground against chief rival Novo Nordisk in the lucrative weight-loss drug market, which analysts project could be worth $150 billion by 2030. The company’s tirzepatide-based drugs work by imitating two gut hormones, GLP-1 and GIP, offering a dual mechanism that differentiates them from Novo Nordisk’s semaglutide products like Ozempic and Wegovy, which only target GLP-1. This competitive advantage has helped Eli Lilly eclipse its rival in prescription volumes and investor enthusiasm.

Looking ahead, the pharmaceutical giant is positioned to maintain its momentum with several strategic initiatives. The company expects to launch an oral version of its popular weight-loss drugs next year, providing patients with a more convenient alternative to injections while potentially easing manufacturing constraints.

Recent deals with the White House to reduce drug prices and planned investments to expand production capacity further support the growth outlook. Analysts at Citi have noted that the latest generation of GLP-1 drugs have already been a “sales phenomenon,” with the upcoming oral medication orforglipron poised to capitalize on the foundation established by its injectable predecessors.

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