Eli Lilly Reaches $950 Billion Market Cap as GLP-1 Drug Leader
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Yahoo Finance
- Market Leadership: Eli Lilly has become the world's most valuable healthcare company with a market cap of approximately $950 billion, having seen its stock price soar 400% over the past five years, primarily driven by the strong demand for its GLP-1 drugs, Mounjaro and Zepbound, highlighting its dominant position in the rapidly growing diabetes and weight loss medication markets.
- New Drug Development Potential: Amgen's developing GLP-1 drug, MariTide, which is an injectable treatment taken once a month, may appeal to patients preferring less frequent injections, with clinical trials showing it can help individuals lose up to 20% of their body weight over 52 weeks, demonstrating significant market potential.
- Relative Valuation Advantage: Amgen's stock currently trades at a forward P/E of 16, compared to Eli Lilly's 32, indicating Amgen's attractiveness in the GLP-1 market; if MariTide gains approval, there could be substantial upside for its stock, presenting a compelling investment opportunity.
- Broad Market Outlook: The GLP-1 drug market is projected to exceed $150 billion within a decade, providing Eli Lilly and other companies with opportunities to capture significant market share in this rapidly expanding sector, further driving company performance.
Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1192 USD with a low forecast of 950.00 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1039.510
Low
950.00
Averages
1192
High
1500
Current: 1039.510
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
