Eli Lilly and Company

What does Eli Lilly make?

Eli Lilly makes prescription pharmaceuticals across four therapeutic areas. Its most important products are Mounjaro (tirzepatide for type 2 diabetes, $23.0 billion FY2025 revenue) and Zepbound (tirzepatide for obesity, $13.5 billion FY2025 revenue). The company also makes Foundayo (orforglipron, the first oral GLP-1 pill for weight loss, approved 2026), Verzenio (breast cancer), Taltz (psoriasis), Ebglyss (atopic dermatitis), Jaypirca (CLL/SLL), Kisunla (Alzheimer's), Emgality (migraine), Trulicity (diabetes), and insulin products including Humalog and Basaglar.

Is Eli Lilly publicly traded?

Yes. Eli Lilly and Company is listed on the New York Stock Exchange under ticker LLY. The company is the largest pharmaceutical company in the world by market capitalisation, with a market value of approximately $800 billion as of mid-2026. Major institutional shareholders include Vanguard Group, BlackRock, and State Street Corporation. No single shareholder holds a controlling stake.

Who founded Eli Lilly?

Eli Lilly was founded in 1876 in Indianapolis, Indiana by Colonel Eli Lilly, a Civil War veteran and pharmacist. He was dissatisfied with the poor quality of medicines available at the time and established his company to produce pharmaceutical products of consistent quality and purity. The company made its first major breakthrough in 1923 when it produced commercial quantities of insulin, saving countless lives and establishing Eli Lilly as a leader in diabetes care.

Where is Eli Lilly headquartered?

Eli Lilly is headquartered in Indianapolis, Indiana, USA, where the company was founded in 1876. The company operates research and development centres, manufacturing facilities, and commercial operations in more than 120 countries. Its Lebanon, Indiana campus is the cornerstone of its domestic manufacturing buildout, with $21 billion in capital expansion commitments since 2020. The Lebanon API site, opening in 2027, will be the largest API production site in US history.

What is Mounjaro and Zepbound?

Mounjaro and Zepbound both contain tirzepatide, a dual GIP/GLP-1 receptor agonist developed by Eli Lilly. Mounjaro is approved for type 2 diabetes and is the most prescribed injectable medication for that condition, generating $23.0 billion in FY2025 revenue. Zepbound is approved for obesity and obstructive sleep apnea and is the most prescribed injectable medication for weight management, generating $13.5 billion in FY2025 revenue. In clinical trials, tirzepatide demonstrated superior efficacy to competing GLP-1 drugs, with patients losing approximately 20% of their body weight in obesity trials.

What is Foundayo (orforglipron)?

Foundayo (orforglipron) is the first FDA-approved oral GLP-1 pill for weight loss, approved by the FDA in Q1 2026. It is a once-daily oral non-peptide GLP-1 agonist that can be taken any time of day without food or water restrictions, differentiating it from other GLP-1 medications. In late-stage trials, orforglipron helped overweight adults without diabetes lose 12.4% of their body weight over 72 weeks at the highest dose. Lilly submitted orforglipron for type 2 diabetes approval in the US in Q2 2026 and has submitted applications in China and Japan.

What is the 340B lawsuit about?

Tampa General Hospital sued Eli Lilly in July 2026, alleging the drugmaker unlawfully cut off discounts under the federal 340B drug pricing programme after the hospital refused to provide prescription-level claims data through Lilly's 340B Electronic Submission Platform. Tampa General alleges it now pays 25% to 50% more on average for Lilly medications. About 3,000 hospitals participate in the 340B programme. Lilly says the reporting requirement is necessary to prevent duplicate discounts and programme abuses. The American Hospital Association and American Medical Association have urged federal officials to intervene.

Eli Lilly and Company was founded in 1876 in Indianapolis, Indiana by Colonel Eli Lilly, a Civil War veteran and pharmacist. Lilly was dissatisfied with the poor quality of medicines available at the time and established his company to produce pharmaceutical products of consistent quality and purity.

Eli Lilly made its first major scientific breakthrough in 1923, when the company partnered with University of Toronto researchers to produce commercial quantities of insulin for the treatment of diabetes. This saved countless lives and established Eli Lilly as a leader in diabetes care, a position it has maintained for more than a century.

The company developed numerous important pharmaceutical products through the 20th century, including Darvon (a pain reliever), Seconal (a sedative), and Keflex (an antibiotic). Eli Lilly also produced the first commercial quantities of penicillin during World War II.

Eli Lilly launched Prozac (fluoxetine) in 1988, which became one of the best-selling antidepressants in history. Prozac generated billions of dollars in revenue through the 1990s and early 2000s. The company launched Zyprexa (olanzapine) for schizophrenia in 1996 and Cymbalta (duloxetine) for depression in 2004, both major commercial products.

Eli Lilly entered the GLP-1 receptor agonist market with Trulicity (dulaglutide) for type 2 diabetes in 2014. The company received FDA approval for Mounjaro (tirzepatide) for type 2 diabetes in May 2022 and for Zepbound (tirzepatide) for obesity in November 2023. Tirzepatide, a dual GIP/GLP-1 receptor agonist, demonstrated superior efficacy to existing GLP-1 drugs in clinical trials, with patients losing an average of approximately 20% of their body weight in obesity trials.

The commercial launch of Mounjaro and Zepbound drove explosive revenue growth. Annual revenue grew from approximately $28 billion in 2022 to $45.0 billion in 2024 to $65.2 billion in 2025. The company became the largest pharmaceutical company in the world by market capitalisation.

In Q1 2026, the FDA approved Foundayo (orforglipron), the first oral GLP-1 pill for weight loss. Orforglipron is a once-daily oral non-peptide GLP-1 agonist that can be taken any time of day without food or water restrictions. In late-stage trials, orforglipron helped overweight adults without diabetes lose 12.4% of their body weight over 72 weeks at the highest dose. Lilly submitted orforglipron for type 2 diabetes approval in the US in Q2 2026.

In Q2 2026, Lilly reported positive data from three additional Phase 3 trials of retatrutide, a triple hormone receptor agonist in late-stage development for obesity and cardiometabolic disease. The clinical data package is complete to support global registrations for obesity, obstructive sleep apnea, and knee osteoarthritis pain, with plans to submit a Biologics License Application to the FDA in Q1 2027.

Lilly has significantly expanded its business development activities in 2026. Through Q2, the company announced more than $10 billion upfront and potentially up to $25 billion on eight acquisitions, compared to approximately $4 billion on roughly 40 deals in all of 2025. Q2 2026 acquisitions included Orna Therapeutics, Ajax Therapeutics, Centessa Pharmaceuticals (up to $7.8 billion, Lilly's second-largest deal ever), and Kelonia Therapeutics. Subsequent to Q2, Lilly completed three acquisitions to build an infectious disease portfolio and entered an agreement to acquire AtaiBeckley.

Eli Lilly maintains sustainability and ethical practices focused on environmental responsibility, pharmaceutical innovation, and global health access.

Environmental Performance:

• Renewable Energy: Purchased 58% of electricity from renewable sources in 2024, doubling renewable energy purchasing compared to 2023
• Waste Reduction: Goals for 100% plastic waste repurposing by 2030, with at least 90% recycled or reused, and zero waste to landfill initiatives
• Green Chemistry: Embedding environmental considerations early in the product development lifecycle through green chemistry and end-product engineering
• Sustainable Manufacturing: New manufacturing facilities incorporating advanced process designs and technologies, including the Lilly Lebanon Advanced Therapies facility for genetic medicines

Social Responsibility:

• Insulin Pricing: Capped out-of-pocket insulin costs at $35 per month for US patients in 2023
• Patient Access: Patient assistance programmes and $650 per month self-pay pricing for Zepbound
• 340B Programme: Participates in the federal 340B drug pricing programme, though has implemented claims data reporting requirements that have drawn legal challenges

Governance:

• ESG Reporting: Maintains comprehensive ESG reporting frameworks
• Clinical Research: Maintains clinical research integrity standards and publishes trial results
• Compliance: Operates under FDA regulations and pharmaceutical industry compliance standards

Eli Lilly is not a certified B Corporation. The tension between pharmaceutical pricing and patient access remains an ongoing challenge, particularly for GLP-1 drugs that cost approximately $1,000 per month before insurance.

Eli Lilly has received recognition for pharmaceutical innovation, particularly for its tirzepatide development programme. The company does not prominently feature consumer-facing awards in its investor communications, as its primary customers are healthcare providers, insurers, and government programmes rather than retail consumers.

The FDA approval of Mounjaro (2022), Zepbound (2023), and Foundayo (2026) represent significant regulatory achievements. Foundayo's approval as the first oral GLP-1 pill for weight loss that can be taken any time of day without food or water restrictions was a notable milestone in obesity treatment.

Eli Lilly has been recognised for its manufacturing investment in the United States, with $50 billion in US capital expansion commitments since 2020. The Lebanon API site, scheduled to open in 2027, will be the largest API production site in US history.

The company has received workplace recognition for diversity and inclusion programmes and employee wellness initiatives. Lilly has also been recognised for its environmental initiatives, including doubling renewable energy purchasing to 58% of electricity in 2024.

Eli Lilly faces significant scrutiny regarding pharmaceutical pricing, regulatory compliance, and market practices.

340B Drug Pricing Lawsuit (July 2026):

Tampa General Hospital sued Eli Lilly in July 2026, alleging the drugmaker unlawfully cut off discounts under the federal 340B drug pricing programme after the hospital refused to provide newly required prescription-level claims data through Lilly's 340B Electronic Submission Platform (ESP). Tampa General alleges it now pays 25% to 50% more on average for Lilly medications, with some costing substantially more, and that higher costs could total tens of millions of dollars annually. The lawsuit claims Lilly is engaging in "exploitation of safety-net hospitals" and "abuse of market power." About 3,000 hospitals participate in the 340B programme. Lilly has said its reporting protocol is necessary to prevent "duplicate discounts and other program abuses." The American Hospital Association and American Medical Association have urged federal officials to intervene.

GLP-1 Drug Pricing and Access:

Eli Lilly faces ongoing scrutiny regarding the pricing of Mounjaro and Zepbound, which cost approximately $1,000 per month before insurance. In May 2026, CVS Health's Caremark unit reversed a decision to restrict Zepbound access after Lilly agreed to cut the price it charges many health plans. More than 10 million US patients regained access through insurance. Lilly reduced Zepbound's self-pay price to $650 per month, but access remains limited for patients without adequate coverage.

Shortage List and Compounding Pharmacies:

In May 2025, a US federal judge sided with the FDA's decision to remove Zepbound and Mounjaro from the shortage list, ending compounding pharmacies' ability to produce cheaper copies. The Outsourcing Facilities Association, a compounding industry group, had sued the FDA in October 2024. The ruling was a victory for Lilly but drew criticism from patients who lost access to cheaper compounded versions.

Insulin Pricing:

Eli Lilly capped out-of-pocket insulin costs at $35 per month for US patients in 2023, following years of criticism about insulin pricing. The company continues to face scrutiny over the broader affordability of its products.

Zyprexa Settlement (2009):

Eli Lilly settled a lawsuit in 2009 for approximately $1.4 billion related to the off-label marketing of Zyprexa (olanzapine) for uses not approved by the FDA. This remains one of the largest pharmaceutical settlements in US history.

Inventory and Sales Reporting (2025):

In January 2025, Lilly shares fell 8% after the company forecast lower-than-expected Q4 Zepbound revenues, attributing the shortfall to wholesalers not restocking inventory as expected. It was the second time in a year that sales came up short due to issues attributed to the supply chain, raising questions about demand tracking and inventory management.