Eli Lilly, a U.S.-based pharmaceutical company, recently became the first in the industry to surpass a market capitalization of $1 trillion, driven by its dominance in the market for the obesity and diabetes drugs ‘Mounjaro’ and ‘Zepbound’. This milestone not only highlights the significant impact a well-developed drug can have on a company’s value but also brings attention to the potential of domestic bio-companies like ABL Bio and LigandChem Bio.
As of November 21, Eli Lilly’s market capitalization reached $1.018 trillion, reflecting its exceptional position in the market for GLP-1 class drugs. The company has effectively captured over 70% of new obesity and diabetes patients in the U.S. with these drugs, generating significant revenue in the latest quarter. Furthermore, with the pending approval of an oral treatment under development, Lilly’s projected revenue for next year is expected to rise considerably.
In South Korea, companies like ABL Bio and LigandChem Bio, though not yet comparable to global giants in market capitalization, have shown remarkable growth, driven by advancements in drug development technology. ABL Bio has gained recognition for its ‘Grabody-B’ platform used in overcoming the blood-brain barrier, which has been licensed to major pharmaceutical firms such as Lilly, GSK, and Sanofi. LigandChem Bio, specializing in antibody-drug conjugates (ADCs), has achieved significant success with major contracts, including with global companies like Janssen and Amgen. These achievements have considerably increased the valuation of both companies.
Not just focusing on simple technology transfer, these companies are evolving their business models to move further along the drug development pipeline. By leveraging previous contract successes, they are positioning themselves for self-driven progress in later stages of development, aiming for eventual profitability and independent completion of drug development.
As these companies continue to strengthen their financial health and advance the commercialization of their products, they aim to reach the global pharmaceutical market scale. While remaining focused on enhancing their late-stage clinical approaches, they also stress the significance of ongoing innovation within their business models.