The Most Overlooked Reason Eli Lilly Stock Keeps Surging — and It Has Nothing to Do With Weight Loss
Reuben Gregg Brewer, The Motley Fool
Sat, July 18, 2026 at 7:05 AM GMT+5:30
4 min read
- LLY
+0.85% - NVO
-2.25%
Eli Lilly (NYSE: LLY) was second to market with a GLP-1 weight-loss drug, losing out to Novo Nordisk (NYSE: NVO). However, Eli Lilly’s Mounjaro and Zepbound produce stronger weight-loss results than Novo Nordisk’s Wegovy, and they quickly took the lead. Now, many on Wall Street see Eli Lilly as a GLP-1 stock, which it is. But that’s not the full picture, as investors are overlooking a much broader business
How important are GLP-1 drugs to Eli Lilly?
Eli Lilly has a GLP-1 weight-loss drug problem. The company‘s highly successful Mounjaro and Zepbound accounted for nearly two-thirds of its revenues in the first quarter of 2026. And with year-over-year revenue growth of 125% and 80%, respectively, these two drugs are clearly the driving force behind the company’s earnings. It is understandable that Wall Street is highly focused on this segment of the business
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Being so heavily dependant on two drugs is a risk. For starters, the pharmaceutical sector is intensely competitive. Other drug companies are working on competing products. Secondly, drugs have limited patent protection, so the windfall here is time-limited even in the best-case scenario. While the GLP-1 story is strong for now, it can’t sustain the stock forever
This is why it is so good to see that Eli Lilly has been using the cash it is generating from GLP-1 drugs to buy other companies. It is, effectively, building its pipeline well ahead of the time when it will face GLP-1 patent expirations. For example, it recently inked a $2.8 billion deal to buy AtaiBeckley, which is working with psychedelic drugs
Eli Lilly has created a position in immunology and more
One area where Eli Lilly is building a strong portfolio is immunology. Essentially, these drugs help people when their own autoimmune systems start attacking their bodies. Eli Lilly is specifically working in Crohn’s disease, ulcerative colitis, dermatology, and rheumatoid arthritis. Ebglyss is a key drug in the space, with first-quarter 2026 sales rising 141% year over year
The company has a number of immunology drug trials underway, as well, that it hopes will lead to new products. And it has been using acquisitions to bolster its plans here, with the early 2026 agreement to purchase Ventyx Biosciences a recent highlight. Ventyx Biosciences had a number of promising drug candidates in its pipeline, so this acquisition helps to build what Eli Lilly hopes will be a strong platform for growth beyond its current GLP-1 portfolio
