Prediction: This will be the first healthcare stock to join the trillion dollar club

There are currently seven companies in the world with a market capitalization of more than $1 trillion. Those companies are Apple, Microsoft, Nvidia, Amazon, AlphabetSaudi Aramco and Meta platforms.

Given how integrated technology has become into almost every aspect of everyday life, it’s not entirely surprising that many of the world’s largest companies operate in the technology industry. While the outlook for each company above looks set to expand even further thanks to the artificial intelligence (AI) revolution, I’d encourage investors to consider what other industries could be poised for disruption.

A healthcare behemoth is disrupting modern medicine in more ways than one. With its market cap currently hovering around $830 billion, I think it’s only a matter of time before Eli Lilly (LLY -1.47%) gets a key to the exclusive trillion dollar club.

Dominating the newest favorite opportunity in healthcare

One of the most prominent areas in the health industry right now is weight loss. Glucagon-like peptide-1 (GLP-1) agonists such as Ozempic, Wegovy, Mounjaro and Zepbound have witnessed unparalleled demand from people with diabetes and obesity and have become blockbuster drugs for their developers.

According to estimates published by the World Health Organization (WHO), 1 in 8 people worldwide meet the criteria for obesity, which means that more than 1 billion people worldwide are living with obesity. Given this large number, I believe there is a clear need for further development and access to GLP-1 drugs.

According to Grand View Research, the total global addressable market (TAM) for GLP-1 drugs is expected to quadruple its current estimated size and reach $145 billion by 2030. Additionally, a number of pharmaceutical companies of all sizes, incl Pfizer, Roche, Amgen, Altimmuneand Viking therapeutics all are looking to disrupt industry players by making their own forays into the weight loss arena.

Eli Lilly, however, is different from its cohorts. Let’s look at another area it disrupts outside of weight loss.

Image source: Getty Images.

At the cutting edge of medicine

In addition to diabetes and chronic weight management, another area emerging as a great opportunity in medicine is the treatment of Alzheimer’s disease. As with the GLP-1 market, treating Alzheimer’s disease is a huge opportunity with limited competition – making the market fragmented and open to disruption.

Although a number of treatments can help patients cope with the symptoms of Alzheimer’s disease, a drug known as Leqembi is one of the most prominent drugs on the market. Leqembi was developed by biogenic and Come on.

According to estimates from Market.Us, the global TAM for treating Alzheimer’s disease is expected to grow at a compound annual growth rate (CAGR) of 19% between 2024 and 2033 — reaching a size of nearly $31 billion.

With Eli Lilly receiving Food and Drug Administration (FDA) approval in July for its own Alzheimer’s treatment, donanemab, I’m excited to see what comes of this new opportunity.

In addition to entering another fragmented market, the healthcare giant recently announced a strategic partnership with OpenAI — the developer of ChatGPT. The idea behind the relationship is to bridge the gap between medicine and AI. More specifically, bringing the power of generative AI to the healthcare space could benefit areas such as data processing in clinical trials as well as drug discovery for underserved medical conditions.

The first to join the trillion dollar club?

Eli Lilly is developing a number of drugs used to treat diabetes, obesity, cancer and even plaque psoriasis. Currently, the company’s primary sources of growth come from its GLP-1 drugs Mounjaro and Zepbound, as well as its cancer drug Verzenio — which received an expanded indication from the FDA last year.

While Mounjaro and Zepbound might also get extended leads, Lilly isn’t resting on its laurels; it is already exploring many other areas of medicine beyond weight loss and treating Alzheimer’s disease.

Eli Lilly is nearly 150 years old, and the company has managed to stay relevant with continuous and relentless innovation. I see it as well positioned to generate strong growth for many years to come. Its prospects include GLP-1 agonists for both weight loss and other conditions, as well as its novel approach to treating Alzheimer’s disease. Combine those with its robust pipeline and existing drug portfolio, and I’m hard-pressed to see Lilly’s growth narrative slowing down anytime soon.

If you’re a long-term investor, I think now is a good time to get Eli Lilly stock. With so much growth on the horizon, the company may soon reach its next milestone: the trillion dollar club.