Eli Lilly Stock Soars: The Secret Behind Today’s Market Domination

Big Pharma flexes its muscles again—Eli Lilly just left the S&P 500 eating its dust.

Here's why Wall Street's suddenly popping champagne over a 138-year-old drugmaker.

The skinny: While tech stocks flail, Lilly's diabetes-and-obesity cash cows keep printing money. No AI hype required.

Street whispers: Rumor has it their GLP-1 drugs could soon crush the $100B weight-loss market. Analysts are too busy revising price targets to notice the irony—treating the side effects of processed food is now more profitable than selling it.

Bottom line: In a market obsessed with 'disruption,' sometimes the best trade is a century-old company quietly cashing checks. Just don't tell the crypto bros.

A half-decade experiment

That morning The Washington Post, citing official documents it had obtained from the Centers for Medicare and Medicaid Services (CMS), provided details of that program.

Image source: Getty Images.

The agency aims to launch a five-year pilot initiative under which Medicare Part D insurance providers and state Medicaid programs WOULD be permitted to cover the costs of obesity drugs. This would help remove a major hurdle for some otherwise qualifying patients, as expenses for the regularly administered Zepbound can add up significantly.

The report comes a day after President TRUMP sent a series of letters to top U.S. healthcare company CEOs insisting that they lower the prices of important treatments. If implemented, this apparent experimental program would fit with the White House's recent cost-saving push for the many Americans using medications.

Details wanted

It wasn't much of a surprise that investors cautiously bid up Eli Lilly stock -- and that of its GLP-1 drug making rival, Wegovy developer-- following the article's publication. Any such program would certainly be a boon for both products and their manufacturers, although much remains to be parsed when and if more details about the CMS's program become available.