Eli Lilly Is Dominating the GLP-1 Market: Here's What a $5,000 Investment Could Look Like in 5 Years
The weight loss tailwind isn't about to come to a halt.
Overview
The first GLP-1 medicine was approved in the U.S. in 2005. It would take over a decade for drugs in this category to become household names. Brands such as Ozempic, Wegovy, and Zepbound are now well-known -- and the maker of the last of these, Eli Lilly (NYSE: LLY), is currently a leader in the GLP-1 market. That's great news for the company, as the GLP-1 space is expected to expand rapidly over the next decade. According to some estimates, it will be worth $190 billion by 2035, more than double its 2025 value. Could Eli Lilly ride this wave and deliver outstanding returns over the medium term? Let's try to figure out what a $5,000 investment in Eli Lilly might be worth in five years.
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Eli Lilly's Zepbound mimics the action of the GLP-1 and GIP hormones. Its ability to combine these two mechanisms is a key reason why it has proven more effective for weight loss than Wegovy in head-to-head studies. Eli Lilly's Mounjaro -- which shares Zepbound's active ingredient -- is a diabetes medicine that is performing even better. Mounjaro is currently Eli Lilly's best-selling drug.
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Originally published at www.fool.com.