Eli Lilly, the largest pharmaceutical company in the US, has exceeded expectations with its impressive launch of the weight loss drug, Zepbound, and the soaring revenue from its blockbuster diabetes treatment, Mounjaro. The company reported fourth-quarter revenue and adjusted earnings that surpassed Wall Street’s predictions.
Zepbound, which received approval from US regulators in November, generated $175.8 million in sales for the fourth quarter. Analysts believe that this drug has the potential to make over a billion dollars in sales within its first year on the market and become the biggest drug of all time. This successful launch has contributed to a 5% increase in Eli Lilly’s stock price during premarket trading.
In terms of financial performance, Eli Lilly reported adjusted earnings per share of $2.49, beating the expected $2.22. The company’s revenue for the fourth quarter reached $9.35 billion, surpassing the estimated $8.93 billion. Net income for the quarter was $2.19 billion, compared to $1.94 billion in the previous year.
Eli Lilly’s full-year forecast for 2024 aligns with expectations. The company expects adjusted earnings of $12.20 to $12.70 per share and revenue of $40.4 billion to $41.6 billion. Analysts predicted adjusted earnings of $12.43 per share and sales of $39.38 billion.
The success of Eli Lilly’s Mounjaro, a diabetes treatment, contributed to the company’s revenue growth. Mounjaro generated $2.21 billion in sales for the quarter, significantly higher than the $279.2 million from the same period last year. The increase in demand and higher prices in the US were key factors in this growth.
Eli Lilly’s breast cancer pill, Verzenio, also performed well with a 42% increase in sales to reach $1.15 billion for the quarter. Sales of Jardiance, a tablet for Type 2 diabetes patients, climbed 30% to $798.1 million.
However, not all of Eli Lilly’s products met analysts’ expectations. Trulicity, another diabetes medicine, reported $1.67 billion in revenue, down 14% from the previous year. Humalog, an insulin product, saw $366.6 million in revenue, a 33% decrease. This decline was anticipated as Eli Lilly announced price cuts for Humalog and another insulin product last year.
Investors and analysts will be keen to hear more details during Eli Lilly’s earnings call. The company may address supply issues concerning its weight loss and diabetes drugs. Additionally, there may be questions about the timing of the FDA’s decision on Eli Lilly’s experimental Alzheimer’s drug, donanemab, as it was not mentioned in the earnings release.
Overall, Eli Lilly’s impressive launch of Zepbound and the strong performance of Mounjaro have contributed to the company’s success in exceeding expectations. With a promising full-year forecast for 2024, Eli Lilly continues to establish itself as a leading pharmaceutical company in the US.
