Why Eli Lilly become global pharmaceutical market value king?

It is recommended that you also read my previous post related to Eli Lilly (ticker: LLY):

“Eli Lilly, a big pharma with astonishing valuation“
“Novo Nordisk’s new diabetes drug Semaglutide,Ozempic,Wegovy and Mounjaro found to have surprising weight-loss effects“

Table of Contents

Two future star drugs in hand

Because it holds two future star drugs, Eli Lilly is very likely to become the world’s first listed pharmaceutical company with a market value of more than one trillion US dollars!

With Alzheimer’s disease and weight loss drugs, Eli Lilly has surpassed Johnson & Johnson (ticker: JNJ) to become the world’s most valuable pharmaceutical company, with its stock price increasing by nearly 70% in the past year. After reaching a market value target of US$500 billion, Eli Lilly hopes to become the world’s first listed pharmaceutical company with a market value of more than US$1 trillion with Alzheimer’s disease and weight loss drugs.

The U.S. drugmaker’s market value reached US$501.482 billion in August this year, surpassing Johnson & Johnson and United Health Group (ticker: UNH) to become the world’s most valuable pharmaceutical and healthcare company.

Eli Lilly’s stock price has increased nearly 70% in the past 12 months, hitting a record high, and the main driving force behind this is two key drugs-Alzheimer’s disease drug donanemab and weight loss drug tilbatide .

Donanemab

Progress

In July, Eli Lilly announced that the results of a phase 3 clinical study of donanemab, the company’s Alzheimer’s disease treatment drug, showed that the drug can slow down the decline of cognitive function in patients in the early stages of Alzheimer’s disease by 35%.

Submitted for review

Eli Lilly said that the company has submitted an application for donanemab to the U.S. Food and Drug Administration (FDA), and the FDA is expected to make a decision before the end of the year.

Competitors

Lecanemab, another Alzheimer’s disease antibody drug developed by Lilly’s competitors, the US biotech company Biogen (ticker: BIIB) and Japan’s Eisai, has received full marketing approval from the FDA in June 2023.

Alzheimer’s disease experts believe that donanemab and lecanemab may be milestones in the treatment of Alzheimer’s disease.

Tilpotide (Monzaro)

The future of weight control

On the other hand, Eli Lilly’s weight loss miracle drug Tilpotide also excited investors.

Note: Tirzepatide is a drug developed by Eli Lilly and Company to treat type II diabetes and obesity. Its commercial brand name is Mounjaro.

Progress

Tilpotide is a dual-target (GIP/GLP-1) receptor initiator developed by Lilly that reduces patients’ weight by suppressing their appetite and increasing energy expenditure.

The results of the Phase III clinical trial of tilpotide showed that patients taking low-dose tilpotide lost an average of 15% in weight, and patients taking high-dose tilpotide lost an average of 22.5% in weight.

Amazing sales

In the second quarter report released in 2023, the sales of tilpotide shocked the market and became the fastest growing drug in history.

In the first half of 2023, Tilpotide’s sales reached US$1.55 billion, of which sales in the second quarter alone reached US$980 million, a 72% month-on-month increase. Eli Lilly even further raised its full-year sales forecast for Tilpotide to US$4 billion.

Sales of tilpotide have nearly doubled in each of the five quarters since its approval, and that was only in the case of diabetes. Semaglutide from Novo Nordisk, another weight loss drug known as a miracle drug, had sales of only US$150 million in its fifth quarter on the market.

Although booming demand has caused some shortages of tilpotide, Eli Lilly has said it will continue to expand production capacity.

Competitors

There is only one major competitor with enough weight in this field, Wegovy of Novo Nordisk (ticker: NVO). About Novo Nordisk, please see my special article introduction: “Novo Nordisk’s new diabetes drug Semaglutide (Semaglutide), Novota Ozempic, Wegovy and Mounjaro were found to have amazing weight loss Effect”

Other drugs

In addition to Alzheimer’s and weight-loss drugs, Lilly also hopes to expand its drug pipeline in oncology and develop drugs to treat conditions such as chronic pain.

Eli Lilly’s Outlook

After the market value reached the $500 billion mark, Eli Lilly’s chief scientific and physician Daniel Skovronsky told the Financial Times that Eli Lilly plans to launch more than 20 new drugs in the next decade to maintain its growth and hopes to become the first Trillion-dollar healthcare companies:

It’s not enough to have good drugs, we need to have some great drugs that will change the history of medicine. In fact, it’s somewhat surprising that there hasn’t been a trillion-dollar healthcare company to date. I hope we can achieve this goal.

Conclusion

Eli Lilly’s Tirzepatide may become the largest single drug in human history, with annual sales likely to reach US$50 billion, while semaglutide has already reached US$10.9 billion in 2022. The entire The weight loss drug market will be a $100 billion market. Spurred by this stimulus, Eli Lilly became the world’s first pharmaceutical company with a market value of over US$500 billion.

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