Lilly Biotechnology Center in San Diego, California, USA on March 1, 2023.
Mike Blake | Reuters
Eli Lilly The company on Wednesday lowered its full-year adjusted profit outlook after reporting lower-than-expected third-quarter profits and sales, weighed down by disappointing sales of blockbuster weight-loss drug Zepbound and diabetes drug Munjaro. Fixed.
The company’s stock price fell as much as 10% in premarket trading before paring some of its losses. Shares in main rival Novo Nordisk fell about 4% in premarket trading.
Eli Lilly now expects full-year adjusted earnings of $13.02 to $13.52 per share, down from its previous forecast of $16.10 to $16.60 per share. The company cited a $2.8 billion charge recorded in the third quarter related to the acquisition of intestinal disease drug company Morphic Holding as impacting its results.
Eli Lilly also lowered the high end of its sales outlook for this year, expecting sales to range from $45.4 billion to $46 billion. The company’s previous guidance had expected revenue of up to $46.6 billion.
Below is a comparison of Eli Lilly’s report for the year ending September 30 with Wall Street expectations, based on a survey of analysts by LSEG.
- Earnings per share: Adjusted $1.18 vs. expected $1.47
- Revenue: $11.44 billion vs. $12.11 billion expected
The September quarter was Zepbound’s third full quarter in the U.S. market since winning regulatory approval about a year ago. The weekly injections brought sales to $1.26 billion in the period, below analysts’ expectations of $1.76 billion, according to Street accounts.
Meanwhile, Mounjaro posted revenue of $3.11 billion in the third quarter. Analysts had expected sales of the diabetes drug to be $3.77 billion, according to Street Accounts.
U.S. demand last year far exceeded supply of Lilly’s incretin drugs, including Zepbound and Munjaro. Both treatments mimic specific gut hormones to suppress a person’s appetite and regulate blood sugar levels.
The popularity of these injectable drugs has forced Eli Lilly and its main rival, Novo Nordisk, to invest billions of dollars to increase manufacturing capacity for the treatments.
Eli Lilly’s supply problems began to ease earlier this year. As of Wednesday, all doses of Zepbound and Munjaro are available in the U.S., despite long-term shortages, according to the Food and Drug Administration’s drug database. Still, the agency cautions that patients may not be able to immediately fill prescriptions for these drugs at specific pharmacies.
Eli Lilly’s net income for the third quarter was $970.3 million, or $1.07 per share, compared to a net loss of $57.4 million, or 6 cents per share, for the third quarter of 2023.
Excluding one-time items related to the value of intangible assets and other adjustments, Eli Lilly’s most recent quarterly earnings were $1.18 per share.
Sales increased 20% year-on-year to $11.44 billion.
This story is developing. Please check back for the latest information.
