What Is Eli Lilly Stock’s Biggest Opportunity?
Investors are currently valuing Eli Lilly (LLY) stock at a premium, with shares priced at 39.5 times earnings compared with 21.9 for the S&P 500. Justifying that multiple may require sustained growth, yet most of Lilly’s sales still come from the company’s two dominant blockbusters, Zepbound and Mounjaro. The pharmaceutical maker has a newer drug on sale and expects to launch it in all major markets worldwide in 2027. So what is the new drug, and is it selling?
What Does Lilly Expect To Take Worldwide In 2027?
The medication is Foundayo, an oral weight-loss drug. During an August 5, 2026 earnings call, executives said the drug can be produced at scale, noting that supply constraints will not hold back launches. More than 40 markets were reviewing the treatment at the time of the August call, and management expects it to be on sale in all major markets in 2027. Later in August, Lilly launched Foundayo in the U.K. for weight management and type 2 diabetes.
The drug is already selling in the U.S. with promising early adoption metrics. Management counted 8,000 prescribers during its previous earnings call, a figure that reached 36,000 by the August call. Subsequently, on September 14, 2026, Lilly announced that Foundayo had won more than 30% of new U.S. patients starting an oral weight-loss drug.
Foundayo Joins Eli Lilly’s Largest Business
Foundayo enters a franchise that already generates most of Lilly’s revenue. During the second quarter of 2026, Mounjaro and Zepbound collectively produced $14.9 billion of the company’s $23.0 billion in revenue. Foundayo itself remains early in its launch.
The underlying market is expanding rapidly. Total U.S. prescriptions for incretin drugs for obesity, whether injected or not, grew 78% in the second quarter. Lilly captured about six in ten of those total prescriptions. The company took a higher share, about seven in ten, of the injected medications. This leaves Lilly with a comparatively lower share among non-injected treatments, which is where Foundayo sells.
Patient access is also broadening. A Medicare program for obesity drugs began on July 1, 2026, and management noted that 35% more people in the U.S. now have coverage for Lilly’s obesity medicines.
What Has To Go Right For Eli Lilly Stock?
The current share price reflects expectations of continued growth, and Foundayo’s U.S. launch provides one avenue that growth could come from. The stock has returned 39% over the past twelve months, outpacing the 17.3% return for the S&P 500. It now sits 7.6% below its 52-week high.
During the August 5 call, management was asked when the U.S. rollout, described as somewhat slower than anticipated, would gain momentum. Executives responded that volume in the last week of July was almost double the level recorded a month earlier.
Beyond obesity, Lilly is attempting to expand the approved indications for Foundayo. Management expects a first trial result in obstructive sleep apnea before the end of 2026. The company has also applied in the U.S. to sell the drug for type 2 diabetes. That regulatory decision, which management expects in 2026, remains one to watch.
Does This Mean You Should Act On LLY?
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