Eli Lilly LLY shares climbed 4.1% on Thursday to a record high of $1,126.80, lifting the drugmaker’s market capitalization to roughly $1.02 trillion. The move followed a major expansion of access to Lilly’s obesity portfolio, reinforcing investor confidence that the company can further capitalize on the booming weight-loss drug market.
The catalyst was Lilly’s announcement that all three of the largest U.S. pharmacy benefit managers (PBMs) now cover its obesity medicine portfolio. Most notably, CVS Caremark will begin covering its newly launched oral GLP-1 pill, Foundayo, from June 1, 2026, and will resume broader coverage of its blockbuster injectable GLP-1 therapy, Zepbound, across template plans by Oct. 1, 2026. The development significantly expands patient access to Lilly’s obesity treatments through existing insurance plans.
The expanded coverage improves affordability for millions of Americans, with eligible commercially insured patients potentially paying as little as $25 per month for either therapy. Increased reimbursement support typically translates into higher prescription volumes, making the CVS decision particularly important for Lilly as competition in the obesity market intensifies. The move also strengthens Lilly’s position across both major obesity treatment formats.
New CVS Coverage Levels LLY’s Obesity Battle With NVO
Novo Nordisk NVO remains Lilly’s primary rival in obesity treatment, marketing its blockbuster GLP-1 therapy Wegovy as both an injectable and an oral medication. The company established an early lead in the oral obesity market with the January 2026 launch of the Wegovy pill, giving it a valuable first-mover advantage over Lilly’s Foundayo, which debuted in early April.
CVS’ prior coverage decisions amplified that advantage. Last year, CVS removed Zepbound from coverage after negotiating more favorable pricing terms for Wegovy and designated Novo Nordisk’s drug as its preferred GLP-1 weight-loss therapy beginning July 1, 2025. Following approval of the oral Wegovy formulation, the pill was also added to coverage. The arrangement improved patient access to NVO’s therapies while making them more affordable through insurance reimbursement.
CVS has now effectively removed that competitive edge. By restoring Zepbound coverage and adding Foundayo to its formulary, the PBM has placed Lilly and Novo Nordisk on much more equal footing in terms of patient access. Both obesity leaders now have covered injectable and oral treatment options available to a broad U.S. patient population.
The shift comes at a challenging time for Novo Nordisk. The company has already warned of negative sales and operating profit growth in 2026, reflecting intensifying competition across the GLP-1 market. Even without CVS coverage, Zepbound had managed to capture a larger share of the injectable obesity market, highlighting strong physician and patient demand.
Lilly enjoys an additional advantage from Zepbound’s clinical profile. In a prior head-to-head study against Wegovy, Zepbound demonstrated greater weight-loss efficacy. With broader insurance coverage now improving affordability, that efficacy advantage could influence prescribing decisions and potentially place further pressure on Wegovy’s market share.
Novo Nordisk was first to market in oral obesity treatment after securing approval for the Wegovy pill in December 2025 and launching it the following month. However, Lilly could narrow that gap quickly through Foundayo’s expanded coverage and growing commercial rollout. The drug also offers a convenience advantage, as it can be taken at any time of day without food or water restrictions. By comparison, the Wegovy pill must be taken on an empty stomach and requires patients to wait 30 minutes before eating. However, NVO’s product appears to hold a modest advantage in tolerability, as Foundayo has been associated with gastrointestinal side effects that may affect some patients.
LLY Faces Rising Pressure From Next-Generation GLP-1 Rivals
The obesity space has garnered much of the spotlight over the past year due to the sizeable and still underpenetrated market opportunity.
Smaller biotech firms, like Viking Therapeutics VKTX and Structure Therapeutics GPCR, are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
LLY’s Stock Price, Valuation and Estimates
Shares of Eli Lilly have gained 4.8% year to date compared with the industry’s 2.4% growth. During the same time frame, the company has also outperformed the sector but underperformed the S&P 500, as seen in the chart below.
LLY Stock Price Movement
From a valuation standpoint, LLY stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 28.86 forward earnings, higher than 17.42 for the industry. However, the stock is trading below its five-year mean of 34.56.
LLY Stock Valuation
Estimates for Eli Lilly’s 2026 earnings have improved from $33.79 to $35.43 per share in the past 30 days, and estimates for 2027 earnings have improved from $42.54 to $44.33 per share over the same time frame.
LLY Estimate Movement
Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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