Jim Cramer has expressed his confidence in Eli Lilly and Co (NYSE:LLY), citing the company’s diverse drug portfolio and the recent endorsement of its Alzheimer’s treatment by FDA advisors.

What Happened: Cramer, the host of CNBC’s “Mad Money,” has been a long-time supporter of Eli Lilly. He believes that the company’s success in the weight loss and diabetes drug markets, combined with the potential of its new Alzheimer’s treatment, could propel its valuation to a trillion dollars, reported CNBC on Tuesday.

"Right now, Eli Lilly's an $823 billion behemoth, and I truly believe it's ultimately headed to a trillion dollar valuation, mostly fueled by the GLP-1 revolution," Cramer said. "But yesterday we got still more proof that Lilly's not merely a one-trick pony."

On Monday, the FDA advisory panel unanimously recommended Eli Lilly’s Alzheimer’s drug, donanemab, bringing it closer to full approval in the U.S. The drug, while not a cure, is designed to slow the progression of Alzheimer’s by targeting amyloid plaques in the brain, a hallmark of the disease.

Despite the uncertainty surrounding donanemab’s market share, Cramer views the advisory committee’s decision as a positive indicator for Eli Lilly’s future.

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“Lilly’s stock has already had a huge run on those GLP-1 numbers, and, as we told members of the investing club, they need to prove to Wall Street that they’ve got something more in the pipeline,” Cramer said. “I think this advisory committee decision on their Alzheimer’s drug does precisely that.”

Why It Matters: The FDA advisory committee’s decision has had a significant impact on Eli Lilly’s stock. The company’s shares were trading higher after the committee’s favorable verdict, which was seen as a crucial step towards the drug’s final FDA approval.

Following the news, BofA Securities analyst Geoff Meacham reiterated a Buy rating on Eli Lilly, predicting that the FDA’s decision would support the regulatory approval of donanemab in patients with mild cognitive impairment/mild dementia.

Earlier this year, Cramer had also expressed his confidence in Eli Lilly, stating that the company, along with NVIDIA Corp and Novo Nordisk A/S, was not overvalued and could be a good investment if the market experienced a dip.

Price Action: Eli Lilly and Co closed at $865.82 on Tuesday, with a slight increase of 0.095% during regular trading hours. After hours, the stock dipped to $864.00, down 0.21%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote