Eli Lilly on the way to becoming a trillion-dollar company

The technological revolution spares almost no area of life and has brought forth many of the world's largest corporations, particularly companies in the technology sector. However, alongside technology, other industries are also ripe for disruptions—one of which is healthcare. A giant that has the potential to revolutionize modern medicine in various ways and ascend to the trillion-dollar club is Eli Lilly. With a current market capitalization of around $830 billion, it may be only a matter of time before the company reaches this exclusive league. Particularly, the market for weight loss proves to be extremely lucrative. Glucagon-like peptide-1 (GLP-1) agonists such as Ozempic, Wegovy, Mounjaro, and Zepbound are experiencing unprecedented demand from individuals with diabetes and obesity. The World Health Organization (WHO) estimates that about one in eight people worldwide meet the criteria for obesity, underscoring the need for effective GLP-1 medications. According to Grand View Research, the global total addressable market (TAM) for GLP-1 medications could quadruple by 2030, reaching a volume of $145 billion. Major pharmaceutical companies such as Pfizer, Roche, Amgen, Altimmune, and Viking Therapeutics, along with smaller players, are competing for market share. However, Eli Lilly stands out due to its diversification. In addition to the weight loss market, the company is also tapping into Alzheimer's treatment. A notable drug in this market is Leqembi, developed by Biogen and Eisai. According to market researchers at Market.Us, the global TAM for Alzheimer's treatment could grow at an annual rate of 19% to nearly $31 billion by 2033. After Eli Lilly received approval for its Alzheimer's drug Donanemab from the U.S. Food and Drug Administration (FDA) in July, there are high expectations for future developments. Additionally, the healthcare giant has announced a strategic partnership with OpenAI, the developer of ChatGPT. This collaboration aims to promote the use of generative AI in healthcare, particularly in data processing for clinical trials and drug development for underserved medical conditions. Eli Lilly's success is based on a broad portfolio of medications for treating diabetes, obesity, cancer, and plaque psoriasis. Growth drivers include GLP-1 medications Mounjaro and Zepbound, as well as the cancer drug Verzenio, which received expanded FDA approval last year. With nearly 150 years of company history, continuous innovation and adaptability remain Eli Lilly's recipe for success. Investors who are betting on the company's long-term success might find a good opportunity to buy shares now. Poised to join the trillion-dollar league, Eli Lilly's future looks promising.