Eli Lilly becomes the first pharma to hit a 1 trillion dollar market cap on booming weight loss drug demand. LLY is +30% over the past month

Eli Lilly (LLY) became the first health care company to top $1 trillion in market capitalization on Friday, joining an exclusive club that includes big tech names like Nvidia (NVDA), Apple (AAPL) and Amazon.com (AMZN).

Shares rose as high at 1,061.17 in early action, tipping Lilly's market cap just north of $1 trillion for the first time. Eli Lilly stock closed 2% higher at 1,059.70, keeping its market cap in the 13-digit club.

According to CNBC, Lilly is the second non-tech name to reach the $1 trillion club in the U.S., following Warren Buffett's Berkshire Hathaway (BRKB).

Eli Lilly Stock's Comeback

Eli Lilly shares are making an impressive comeback, rising 35% this year after the drugmaker inked a deal with the Trump administration to sell its weight-loss drug, Zepbound, for a lower price on the new direct-to-consumer website, TrumpRx. The deal also includes a provision for Eli Lilly to sell Zepbound and Mounjaro, its diabetes powerhouse, to Medicare at a significant discount.

Rather than hurt Lilly's top line, experts say the move will expand the market, adding new patients who couldn't otherwise afford the popular drugs.

"The market penetration of these drugs in weight loss is still fairly low, and in diabetes, where it's higher, it's still low," Brad Stewart, an executive with the advisory firm BDO, recently told Investor's Business Daily. "There's still a tremendous opportunity from growth just purely from additional patients."

Lilly Shares Hit A Record High

Lilly stock has a perfect IBD Digital Composite Rating of 99. The 1-99 score pits a stock's fundamental and technical measures against all other stocks. On this measure, Eli Lilly stock outranks 99% of stocks, regardless of industry group.

Shares broke out of a lengthy consolidation with a buy point at 972.53. That entry represents the stock's previous record high, dating back to August 2024. Lilly stock has since blown well past that mark. The stock is now about 8% above its entry, north of the buy zone.

The strength is represented in Eli Lilly stock's 93 Relative Strength Rating, a measure of a stock's 12-month performance relative to all other stocks. Shares also have a nearly perfect EPS Rating of 98, meaning earnings growth is in the top 2% echelon of companies.