After tanking in early August, the world’s most valuable pharmaceutical stock has roared back with a vengeance. That firm is Eli Lilly and Company (NYSE: LLY), the maker of the wildly popular weight loss and diabetes drugs Zepbound and Mounjaro. During the trading week ending Oct. 3, the stock surged by 16%, reaching its highest level since April.
This comes after Lilly shares plummeted by over 14% on Aug. 7, even though its Q2 release that day crushed expectations. However, the simultaneous release of disappointing clinical trial results for its oral GLP-1, orforglipron, led shares to plummet. MarketBeat pointed out at that time that this could be a fruitful buy-the-dip opportunity. Since that 14% fall, the stock is up more than 31% year-to-date. Notably, around half of this gain came recently, driven by an all-important development: Pfizer’s (NYSE: PFE) tariff deal. Below, we’ll break down exactly what drove the highly impressive run-up in Lilly shares and what's next.
