Eli Lilly: First drugmaker to hit $1T valuation on weight-loss boom

Eli Lilly, the drugmaker company’s valuation has soared to $1 trillion as the demand grows due to the weight-loss boom.

This valuation makes it the world’s first healthcare company to join the exclusive club which is already dominated with tech giants.

After Warren Buffett’s Berkshire Hathaway, Eli Lilly is the second nanotechnology firm which has secured the highly-desirable $ 1 trillion valuation in the US markets.

The company's shares, which briefly hit a record high, were trading nearly 1% higher at $1,051 as reported by Reuters.

This year, the drugmaker’s stock soared more than 36 percent driven by the GLP-1 drug boom, challenging rival Novo Nordisk’s position in the drug market.

The company’s success is further strengthened by the surging popularity of weight loss injection, Zepbound and Mounjaro, diabetes treatment.

According to the company's findings, Mounjari brought $6.52 billion in revenue in the third quarter, 109 percent jump from last year.

Zepbound attracted $3.59 billion in the same quarter, showing 184 percent surge from previous year.

Evan Seigerman, analyst at BMO Capital Markets said, “The current valuation points to investor confidence in the longer-term durability of the company's metabolic health franchise. It also suggests that investors prefer Lilly over Novo in the obesity arms race.”

In the next year, Eli Lilly is expected to bring an oral version of its popular drugs, creating ease for patients.

As per some analysts’ observations, Eli Lilly will maintain its top position in the drug market driven by ever-growing weight-loss demand, thereby leading to worth more than $150 billion by the early 2030s.