The Lilly Endowment, the principal stakeholder in pharmaceutical giant Eli Lilly & Co. (LLY  ), has witnessed an exceptional surge in its assets, reaching an estimated $60 billion amid the soaring success of the company's weight-loss drug, Mounjaro, which bolstered Eli Lilly's stocks by almost 60% in the preceding year.

According to John Seitz, founder and CEO of research firm FoundationIQ, this surge in Eli Lilly's stock value empowered the endowment to offer approximately $2 billion in 2023, a substantial increase from the previous year's $1.3 billion.

In 2022, Lilly Endowment held $40.8 billion in assets.

This massive growth has significantly closed the gap with the renowned Bill & Melinda Gates Foundation with around $68 billion in assets, positioning the charitable organization as a philanthropic powerhouse, Bloomberg reported.

However, concerns loom among analysts regarding the sustainability of weight-loss drug manufacturers' stock ascension in 2024. Challenges such as intensifying competition, production issues, and stretched valuations could jeopardize the upward trajectory.

Despite potential setbacks, the Lilly Endowment is emerging as a significant player in philanthropy, rivaling historic entities like the Ford, Carnegie, and Rockefeller foundations. Unlike the Gates Foundation, the Lilly Endowment has consciously maintained a lower profile, focusing primarily on Indiana-based organizations and religious groups, with a substantial portion of donations allocated to mainstream Christian causes.

Although several former Eli Lilly executives and a family member serve on its board, the Lilly Endowment operates independently of the pharmaceutical company, upholding its original goals set in 1937.

Price Action: LLY shares are up 0.63% at $618.36 on the last check Friday.