Eli Lilly reported mixed results for the fourth quarter, despite robust sales for its weight loss drug Zepbound and diabetes medication Mounjaro. However, lower realized prices dampened overall performance.
These findings align with the preliminary results Eli Lilly disclosed in January, which fell short of investor expectations. In response, the company reduced its 2024 revenue forecast, anticipating that demand for its obesity and diabetes treatments would fall short of initial projections.
Despite the revenue shortfall, Eli Lilly’s quarterly earnings exceeded Wall Street estimates. The company also provided fiscal 2025 profit guidance of $22.05 to $23.55 per share, in line with analyst predictions. Eli Lilly retained its fiscal 2025 sales guidance of $58 billion to $61 billion.
Notably, Eli Lilly plans to release late-stage data on its next-generation obesity drug, retatrutide, earlier than anticipated—later this year. This innovative treatment works by mimicking three appetite-regulating hormones: GLP-1, GIP, and glucagon, offering a new approach to obesity management.
Key Financial Highlights
According to a survey of analysts by LSEG, Eli Lilly reported the following fourth-quarter metrics compared to expectations:
- Earnings per share: $5.32 adjusted vs. $4.95 expected
- Revenue: $13.53 billion vs. $13.57 billion expected
Eli Lilly’s fourth-quarter revenue totaled $13.53 billion, representing a 45% increase from the same period the previous year.
The company reported net income of $4.41 billion, or $4.88 per share, for Q4. This compares with a profit of $2.19 billion, or $2.42 a share, in the prior year.
Excluding one-time items, such as intangible asset valuations, Eli Lilly recorded adjusted earnings of $5.32 per share for the fourth quarter of 2024.
Zepbound and Mounjaro Performance
Mounjaro generated $3.53 billion in revenue during Q4, up 60% year-over-year. Analysts had forecast sales of $3.62 billion for the quarter.
Eli Lilly attributed the growth to strong demand and increased supply, but noted that lower realized prices due to favorable changes in rebate and discount estimates in Q4 2023 partially offset these gains.
Zepbound, an injectable weight loss medication, produced $1.91 billion in sales for the fourth quarter. This represents a slight decline from the $1.98 billion analysts anticipated.
Despite the second consecutive quarter of underperformance, demand for Eli Lilly’s incretin drugs, including Zepbound and Mounjaro, has consistently outpaced supply in the U.S. market. Both drugs work by mimicking gut hormones to suppress appetite and regulate blood sugar levels.
This story is developing. Please check back for updates.
With strong market demand and innovative new treatments in the pipeline, Eli Lilly is well-positioned to navigate the complexities of the pharmaceutical industry. Investors and healthcare professionals will be closely watching the release of retatrutide’s late-stage data for further insights into future growth prospects.
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