GLP-1 treatments such as semaglutide (under the brand names Ozempic and Wegovy) by Novo Nordisk A/S (NYSE: NVO) were likely the hottest medical sector story in 2024. With its offering of tirzepatide (branded as Mounjaro and Zepbound), Eli Lilly and Co. (NYSE: LLY) was another key pharma player in this new type of treatment for diabetes and obesity. Revenue gains followed the popularity of these treatments. Eli Lilly saw Mounjaro sales climb by about 114% year-over-year in the third quarter of 2024, beating Novo Nordisk in large part thanks to the availability of supply.
Nonetheless, shares of Eli Lilly have been erratic in recent months. Though the stock is up 25.1% in the year leading to January 24, 2025, in the back half of that time period—the six months from late July 2024 through January—LLY has dropped by more than 4%. This is all despite a record-high share price of close to $973 achieved in 2024 on the momentum of tirzepatide sales.
