Drugmaker Lilly's value hits $1 trillion

Investors betting on weight-loss medicine

- MRINALIKA ROY

Eli Lilly hit $1 trillion in market value on Friday, making it the first drugmaker to enter the exclusive club dominated by tech giants and underscoring its rise as a weight-loss powerhouse.

A more than 35% rally in the company's stock this year has largely been driven by the explosive growth of the weight-loss drug market.

In the last two years as new, highly effective obesity treatments hit the market, the category has emerged as one of the most lucrative segments in healthcare.

Sales of Lilly's tirzepatide, marketed as Mounjaro for type 2 diabetes and Zepbound for obesity, have also topped Merck's Keytruda as the world's bestselling drug.

Novo Nordisk had the early lead in the space, but Mounjaro and Zepbound have surged in popularity and helped the company eclipse its rival in prescriptions.

Lilly pulled ahead in part because Novo's Wegovy launch in 2021 was hampered by supply shortages, giving Lilly room to gain ground. The US company's drugs have also shown stronger clinical efficacy, and Lilly has been faster to scale up manufacturing and expand distribution.

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