Eli Lilly is currently redefining its market position through a series of strategic developments. The pharmaceutical giant finds itself at a pivotal moment, propelled by a significant government pricing agreement, exceptional financial performance, and promising drug pipeline advancements. This convergence of factors has positioned the Indianapolis-based company for substantial growth, though questions remain about its ability to sustain this accelerated momentum.
Exceptional Quarterly Performance Sets New Benchmarks
Even before recent policy developments, Eli Lilly demonstrated remarkable operational performance. On October 30, 2025, the company released third-quarter results that significantly surpassed market expectations. Revenue surged by 54% to reach $17.60 billion, substantially exceeding the projected $16.01 billion. Adjusted earnings per share hit $7.02, outperforming analyst forecasts of $5.69.
The standout performers driving this growth were:
– Mounjaro (diabetes treatment): $6.52 billion in revenue, representing 109% year-over-year growth
– Zepbound (weight management): $3.57 billion in revenue, achieving 184% year-over-year expansion
Both medications exceeded consensus estimates, prompting the company to raise its full-year 2025 guidance. Eli Lilly now anticipates total revenue between $63.0 and $63.5 billion, up from previous projections of $60-62 billion. Similarly, adjusted earnings per share expectations were increased to $23.00-$23.70, compared to the prior range of $21.75-$23.00.
Landmark Government Agreement Expands Access
A transformative development occurred on November 6, 2025, when President Donald Trump announced a groundbreaking agreement with Eli Lilly and competitor Novo Nordisk. The arrangement will dramatically reduce prices for GLP-1 obesity medications for Medicare beneficiaries. Starting in January 2026, eligible patients will pay no more than $50 monthly for Zepbound (tirzepatide) and the forthcoming oral weight management medication Orforglipron, pending FDA approval.
This policy shift benefits approximately 40 million overweight Americans with government health insurance. CEO David Ricks characterized the agreement as “a turning point in U.S. healthcare policy.”
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Concurrently, the administration will launch TrumpRx.gov, a platform enabling self-pay patients to purchase discounted medications directly. The new pricing structure for cash-paying customers includes:
– Zepbound multi-dose pens: starting at $299 (lowest dosage) up to $449
– Orforglipron (oral formulation): ranging from $149 to $399
These prices represent discounts of up to $50 compared to previous direct-purchase rates, marking a substantial step toward democratizing obesity treatment.
Pipeline Advancement and Production Expansion
The company anticipates FDA approval for its oral weight management drug Orforglipron by March 2026. Eli Lilly has submitted a priority review application, a regulatory pathway that accelerates approval for treatments addressing significant public health needs. The oral administration method provides a crucial advantage over injectable GLP-1 alternatives and could substantially reshape the treatment landscape.
Supporting this anticipated demand surge, Eli Lilly is making substantial manufacturing investments. The company is channeling $3 billion into a new facility in Katwijk, Netherlands, and an additional $1.2 billion to expand its Puerto Rico operations. These strategic investments demonstrate the company’s preparation for expected market growth.
Market Confidence and Strategic Positioning
Financial analysts have responded positively to these developments. On November 6, BMO Capital elevated its price target from $930 to $1,100 – an 18% increase – while maintaining its “outperform” rating. The firm noted Eli Lilly’s strengthening position in the competitive GLP-1 market, bolstered by innovative distribution strategies including a recent collaboration with Walmart for discounted Zepbound vials.
The combination of government partnership, robust financial performance, strategic leadership expansion with two new board members specializing in neuroscience and immunology, and a promising development pipeline positions Eli Lilly advantageously for 2026. Market observers now await the company’s next moves, particularly the commercial launch of Orforglipron, which will provide further indication of whether this exceptional growth trajectory can be maintained.
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