What Happened?

Shares of global pharmaceutical company Eli Lilly (NYSE: LLY) jumped 3.3% in the morning session after the company announced a partnership to develop a new oral obesity drug and was reported to be in advanced talks to acquire Ventyx Biosciences for over $1 billion. 

The collaboration with Nimbus Therapeutics aimed to create small molecule treatments for obesity, a move that strengthened Lilly's future product line beyond its current injectable drugs. The partnership included a $55 million upfront payment and up to $1.3 billion in future payments based on development and sales success. Separately, The Wall Street Journal reported that Eli Lilly was close to a deal to buy Ventyx Biosciences. Both developments pointed to a significant expansion of the company's portfolio, boosting investor confidence in its strategy to dominate the weight-loss treatment market.

After the initial pop the shares cooled down to $1,099, up 3.3% from previous close.

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What Is The Market Telling Us

Eli Lilly’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 20 days ago when the stock gained 2.2% on the news that the company released positive data from its Phase 3 "ATTAIN-MAINTAIN" trial, which evaluated the efficacy of its daily oral pill, orforglipron. The study demonstrated that patients switching from injectable treatments like Zepbound to this oral alternative successfully maintained the vast majority of their weight loss. This development offers a promising solution to "needle fatigue," potentially allowing Lilly to capture patients looking for a convenient off-ramp from injectable therapies.

Eli Lilly is up 1.7% since the beginning of the year, and at $1,099 per share, it is trading close to its 52-week high of $1,110 from November 2025. Investors who bought $1,000 worth of Eli Lilly’s shares 5 years ago would now be looking at an investment worth $6,629.

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