Eli Lilly is making headlines as its stock price approached a historic milestone, with Jim Cramer of CNBC declaring that the pharmaceutical company is on track to become the first in its industry to reach a valuation of $1 trillion. On Wednesday, Eli Lilly shares exceeded $1,000 each for the first time, pushing the company’s market cap beyond $950 billion. To achieve the coveted $1 trillion mark, shares would need to climb to approximately $1,058.
Cramer noted a growing consensus among investors that the company’s potential may be significantly underestimated. His remarks during the broadcast of “Squawk on the Street” highlighted the recent White House agreement related to GLP-1 medications, which impacts both Eli Lilly and its competitor Novo Nordisk. This deal aims to lower the prices of certain obesity drugs for Medicare and Medicaid beneficiaries by 2026, thereby increasing access to Lilly’s highly successful weight-loss treatments.
Among these treatments is Zepbound, an injectable medication containing tirzepatide, an active ingredient that has garnered significant attention. Lilly is concurrently developing a pill form of a similar medication, known as orforglipron. Cramer expressed optimism about the pill’s market potential, stating that consumer preference for oral medications over injectables should drive sales. He noted that pills are not only more convenient for patients but also simpler to manufacture, making them an attractive option in the market.
Lilly’s CEO, David Ricks, anticipates the launch of orforglipron in the latter half of 2026, sparking further enthusiasm among investors. Echoing Cramer’s optimism, analysts at Citi have also taken a bullish stance, stating they are “all in” on the drug’s potential. They recently increased their sales forecast for the pill from $500 million to an impressive $1.8 billion by 2026, a reflection of the anticipated growth in the weight-loss medication category.
As a result of these changes, Citi has adjusted Eli Lilly’s price target to a new high of $1,500 per share, representing more than a 50% upside from its closing price on Tuesday. This upbeat outlook comes after a challenging period for Lilly shares, which experienced a steep decline of 14% on August 7 due to disappointing results from a late-stage trial concerning its obesity pill, overshadowing otherwise strong quarterly earnings.
Eli Lilly remains a key holding in Cramer’s Charitable Trust, which is actively managed as part of the CNBC Investing Club, further underscoring its significance in the current investment landscape.
