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Can Mounjaro, Zepbound & Foundayo Keep Fueling LLY's Growth Story?
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Key Takeaways
Mounjaro and Zepbound saw strong Q1 sales growth, fueled by robust demand despite lower pricing.
New label expansions and indication approvals could further boost Mounjaro and Zepbound sales.
Foundayo has reached over 20,000 U.S. patients and a launch is planned for most international markets in 2027.
Eli Lilly (LLY - Free Report) has emerged as a dominant force in the cardiometabolic market, driven by strong demand for its blockbuster GLP-1 therapies, Mounjaro for type II diabetes (T2D) and Zepbound for obesity. Both drugs include the same compound, tirzepatide, a dual GIP/GLP-1 RA. The GLP-1 segment is a very important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity.
Despite a short time on the market, Mounjaro and Zepbound have become LLY’s key top-line drivers. Mounjaro is the market leader in new prescriptions among incretin analogs for T2D in both the United States and ex-U.S. markets. At the same time, Zepbound holds a leading market share in the branded obesity market, with nearly 70% of new prescriptions.
In the first quarter of 2026, Mounjaro recorded sales of $8.66 billion, up 125% year over year, while Zepbound’s sales were $4.16 billion, up 80% year over year, driven by increased demand, which offset the impact of lower pricing. The positive trend is expected to continue in 2026.
New indication approvals and ongoing label expansions could further boost sales of Eli Lilly’s Mounjaro and Zepbound. Last year, Zepbound gained FDA approval for obstructive sleep apnea in adults with obesity, while LLY has also filed for a cardiovascular indication based on positive late-stage data. Tirzepatide has also been approved for pediatric and adolescent T2D in the United States and the EU, with additional studies underway in type I diabetes and metabolic dysfunction-associated steatotic liver disease. Lilly is also supporting growth through lower-priced Zepbound vial doses, self-pay savings programs and expanded incretin manufacturing capacity.
Eli Lilly’s newly approved once-daily oral GLP-1 pill, Foundayo, has shown encouraging early launch momentum in obesity, with broad pharmacy availability, access through major telehealth platforms and commercial coverage from two of the three largest U.S. pharmacy benefit managers. More than 8,000 healthcare providers have prescribed the drug, while over 20,000 patients have received it so far, with most prescriptions coming from people new to GLP-1 therapy.
Lilly plans to launch Foundayo in most international markets in 2027 and is pursuing approvals for T2D in several countries, with a U.S. filing expected in late second-quarter 2026. Backed by consistent safety and efficacy data across seven phase III studies, Foundayo is being positioned as a key growth driver for Lilly in obesity, diabetes and related metabolic diseases.
LLY’s Peers in the Obesity Space
Eli Lilly and Novo Nordisk (NVO - Free Report) presently dominate the obesity market. Mounjaro and Zepbound directly compete with NVO’s semaglutide medicines, Ozempic for T2D and Wegovy for obesity. Like Eli Lilly, Novo Nordisk also generates a substantial portion of revenues from both drugs.
Novo Nordisk gained approval for an oral version of its obesity drug, Wegovy, in December 2025 and launched the pill in January 2026, giving it a first-mover advantage over Foundayo. However, Lilly may be able to close the gap quickly now that it has launched Foundayo. Also, Foundayo offers better patient convenience, as it can be taken at any time of day, with or without food. In contrast, NVO’s Wegovy pill must be taken on an empty stomach, followed by a 30-minute wait before eating. However, in terms of side effects, Wegovy has a slight edge, as it appears to have a more stable safety and tolerability profile than Foundayo, whose use is associated with some gastrointestinal side effects.
Smaller biotech firms, like Viking Therapeutics (VKTX - Free Report) and Structure Therapeutics (GPCR - Free Report) , are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
LLY’s Stock Price, Valuation and Estimates
Shares of Eli Lilly have lost 5.2% year to date compared with the industry’s 0.7% decline. During the same time frame, the company has also underperformed the S&P 500 but outperformed the sector, as seen in the chart below.
LLY Stock Price Movement
Image Source: Zacks Investment Research
From a valuation standpoint, LLY stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 26.23 forward earnings, higher than 16.98 for the industry. However, the stock is trading below its five-year mean of 34.56.
LLY Stock Valuation
Image Source: Zacks Investment Research
Estimates for Eli Lilly’s 2026 earnings have improved from $34.70 to $35.45 per share in the past 30 days, and estimates for 2027 earnings have improved from $42.67 to $44.23 per share over the same time frame.
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Can Mounjaro, Zepbound & Foundayo Keep Fueling LLY's Growth Story?
Key Takeaways
Eli Lilly (LLY - Free Report) has emerged as a dominant force in the cardiometabolic market, driven by strong demand for its blockbuster GLP-1 therapies, Mounjaro for type II diabetes (T2D) and Zepbound for obesity. Both drugs include the same compound, tirzepatide, a dual GIP/GLP-1 RA. The GLP-1 segment is a very important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity.
Despite a short time on the market, Mounjaro and Zepbound have become LLY’s key top-line drivers. Mounjaro is the market leader in new prescriptions among incretin analogs for T2D in both the United States and ex-U.S. markets. At the same time, Zepbound holds a leading market share in the branded obesity market, with nearly 70% of new prescriptions.
In the first quarter of 2026, Mounjaro recorded sales of $8.66 billion, up 125% year over year, while Zepbound’s sales were $4.16 billion, up 80% year over year, driven by increased demand, which offset the impact of lower pricing. The positive trend is expected to continue in 2026.
New indication approvals and ongoing label expansions could further boost sales of Eli Lilly’s Mounjaro and Zepbound. Last year, Zepbound gained FDA approval for obstructive sleep apnea in adults with obesity, while LLY has also filed for a cardiovascular indication based on positive late-stage data. Tirzepatide has also been approved for pediatric and adolescent T2D in the United States and the EU, with additional studies underway in type I diabetes and metabolic dysfunction-associated steatotic liver disease. Lilly is also supporting growth through lower-priced Zepbound vial doses, self-pay savings programs and expanded incretin manufacturing capacity.
Eli Lilly’s newly approved once-daily oral GLP-1 pill, Foundayo, has shown encouraging early launch momentum in obesity, with broad pharmacy availability, access through major telehealth platforms and commercial coverage from two of the three largest U.S. pharmacy benefit managers. More than 8,000 healthcare providers have prescribed the drug, while over 20,000 patients have received it so far, with most prescriptions coming from people new to GLP-1 therapy.
Lilly plans to launch Foundayo in most international markets in 2027 and is pursuing approvals for T2D in several countries, with a U.S. filing expected in late second-quarter 2026. Backed by consistent safety and efficacy data across seven phase III studies, Foundayo is being positioned as a key growth driver for Lilly in obesity, diabetes and related metabolic diseases.
LLY’s Peers in the Obesity Space
Eli Lilly and Novo Nordisk (NVO - Free Report) presently dominate the obesity market. Mounjaro and Zepbound directly compete with NVO’s semaglutide medicines, Ozempic for T2D and Wegovy for obesity. Like Eli Lilly, Novo Nordisk also generates a substantial portion of revenues from both drugs.
Novo Nordisk gained approval for an oral version of its obesity drug, Wegovy, in December 2025 and launched the pill in January 2026, giving it a first-mover advantage over Foundayo. However, Lilly may be able to close the gap quickly now that it has launched Foundayo. Also, Foundayo offers better patient convenience, as it can be taken at any time of day, with or without food. In contrast, NVO’s Wegovy pill must be taken on an empty stomach, followed by a 30-minute wait before eating. However, in terms of side effects, Wegovy has a slight edge, as it appears to have a more stable safety and tolerability profile than Foundayo, whose use is associated with some gastrointestinal side effects.
Smaller biotech firms, like Viking Therapeutics (VKTX - Free Report) and Structure Therapeutics (GPCR - Free Report) , are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
LLY’s Stock Price, Valuation and Estimates
Shares of Eli Lilly have lost 5.2% year to date compared with the industry’s 0.7% decline. During the same time frame, the company has also underperformed the S&P 500 but outperformed the sector, as seen in the chart below.
LLY Stock Price Movement
From a valuation standpoint, LLY stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 26.23 forward earnings, higher than 16.98 for the industry. However, the stock is trading below its five-year mean of 34.56.
LLY Stock Valuation
Estimates for Eli Lilly’s 2026 earnings have improved from $34.70 to $35.45 per share in the past 30 days, and estimates for 2027 earnings have improved from $42.67 to $44.23 per share over the same time frame.
LLY Estimate Movement
Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.