Eli Lilly’s shares have recovered roughly 18% from their December low as investors took note of renewed momentum in its broader oncology and metabolic franchises. The recent rally has brought the stock within striking distance of a traditional technical buy point after a multiweek pullback. Underpinning this rebound is Lilly’s announcement of a collaboration with Nvidia to harness generative AI for speeding up small-molecule discovery—an initiative expected to evaluate thousands of novel compounds across multiple therapeutic areas by midyear.

Lilly’s obesity drug business propelled a 39% increase in full-year revenue in 2025, driven by strong uptake of its dual GIP/GLP-1 therapies Mounjaro and Zepbound. Mounjaro prescriptions more than doubled over the past six quarters, and Zepbound has already reached penetration levels rivaling leading competitors. Management forecasts the obesity market could exceed $100 billion by 2030, with Lilly’s weekly and planned oral offerings targeting a potential patient base of over 20 million individuals in the U.S. alone.

At the JPMorgan Healthcare Conference, Lilly’s chief scientific officer, Dan Skovronsky, emphasized the next phase of obesity care will feature multiple formats—from weekly injections to daily pills—and a growing focus on personalized regimens. Lilly plans to submit data for its oral GLP-1 candidate later this year, aiming for FDA review in 2027. Executives also highlighted recently struck agreements that will introduce Medicare coverage for obesity therapies, potentially expanding the addressable market by an estimated 5 million beneficiaries over the next two years.