Eli Lilly Shares Surge 5.36% to Monthly High on Obesity Drug Data, Market Dominance

The share price rose to its highest level so far this month today, with an intraday gain of 5.36%.

Eli Lilly’s recent rally is driven by promising clinical data for its experimental obesity drug eloralintide, which demonstrated 9.5% to 20.1% weight loss in a Phase 2 trial compared to 0.4% in the placebo group. The results, announced in late October, have accelerated plans for Phase 3 trials in 2025, bolstering confidence in the company’s expanding pipeline. Concurrently, its GLP-1 drug tirzepatide (branded as Zepbound and Mounjaro) dominates the U.S. market, capturing 57.9% of GLP-1 prescriptions in Q3 2025. Zepbound alone holds 63% of the branded weight loss drug market, reflecting strong demand for its dual GLP-1/GIP mechanism.

Strong financial performance further supports the stock’s momentum. Q3 revenue surged 54% year-over-year to $17.6 billion, with adjusted earnings per share rising 495% to $7.02. The company raised its 2025 revenue guidance to $63–65 billion and operating margins remain robust at 45.16%. However, elevated valuations—trading at a P/E of 45.29 and P/S of 14.03—highlight risks if clinical progress or market dynamics fall short. Analysts remain optimistic about tirzepatide’s sustained dominance and potential approval of eloralintide, though regulatory scrutiny and macroeconomic headwinds could temper growth. Institutional ownership and a diversified portfolio across oncology, immunology, and neuroscience provide additional stability amid market volatility.