During his Mad Money segment, Jim Cramer pointed to Eli Lilly’s expanding late-stage pipeline and recent analyst upgrades as primary drivers of the company’s stock momentum. He noted that three separate brokerages raised their 12-month target on LLY over the past two weeks, citing strong Phase III data readouts expected for two oncology candidates later this quarter. Cramer emphasized that investors are increasingly focused on Lilly’s projected revenue growth—analysts estimate a 22% compound annual growth rate through 2028, powered largely by new indications for its glaucoma and migraine treatments.

CEO Dave Ricks told CNBC that Lilly anticipates Medicare will begin covering its experimental obesity pill, orforglipron, immediately after the drug’s anticipated launch in the second quarter. This follows the company’s November agreement securing drug pricing deals with the federal government. Ricks pointed out that more than 40% of U.S. adults with obesity are enrolled in Medicare, representing a market opportunity potentially worth $12 billion in annual sales. He added that widespread coverage will shift many patients off cash-pay regimens for competitor GLP-1 injectables.

Lilly is positioning orforglipron to compete directly with Novo Nordisk’s newly approved GLP-1 therapies by highlighting its oral delivery format and lower expected cost per patient. Internal forecasts presented to investors project peak annual sales of $5 billion for orforglipron, capturing roughly 15% of a U.S. obesity market currently valued at $35 billion. Analysts point out that while LLY trades at a trailing P/E ratio above 50, the valuation reflects anticipated double-digit operating margin expansion driven by high-margin specialty medicines.