by The Lilly Biotechnology Center is shown in San Diego, California, United States on March 1, 2023.
Mike Blake | Reuters
Elie Lilly On Wednesday, it missed earnings and revenue expectations for the third quarter, weighed down by disappointing sales of its blockbuster weight-loss drug Zepbound and diabetes treatment Mounjaro, and cut its forecast of adjusted profits for the whole year.
The company’s shares fell as much as 10% in premarket trading before paring some losses. Shares of its main rival, Novo Nordisk, fell about 4% premarket.
Eli Lilly now expects full-year adjusted earnings in the range of $13.02 to $13.52 per share, down from the previous forecast of $16.10 to $16.60 per share. The drugmaker cited a $2.8 billion charge recorded during the third quarter related to its acquisition of intestinal disease drug maker Morphic Holding as having hurt its results.
Eli Lilly also lowered its revenue forecast for the year and now expects revenue between $45.4 billion and $46 billion. The company’s previous guidance called for revenue of up to $46.6 billion.
Here’s what Eli Lilly reported for the period ended September 30 versus what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: $1.18 adjusted vs. $1.47 expected
- Income: $11.44 billion versus $12.11 billion expected
The September period was Zepbound’s third full quarter in the U.S. market after winning approval from regulators almost a year ago. The weekly infusion generated $1.26 billion in sales for the period, below the $1.76 billion expected by analysts, according to StreetAccount.
Meanwhile, Mounjaro reported revenue of $3.11 billion for the third quarter. Analysts expected revenue of $3.77 billion for the diabetes treatment, according to StreetAccount.
Demand in the United States has far outpaced supply for Lilly’s incretin drugs, such as Zepbound and Mounjaro, over the past year. Both treatments mimic certain gut hormones to reduce a person’s appetite and regulate their blood sugar.
The popularity of these injectable drugs has forced Eli Lilly and its main rival, Novo Nordisk, to invest billions to increase manufacturing capacity for these treatments.
Eli Lilly’s supply problems began to ease earlier this year. On Wednesday, the Food and Drug Administration’s drug database reported that all doses of Zepbound and Mounjaro were available in the United States after prolonged shortages. The agency cautions, however, that patients may not always be able to immediately fill their prescription for these medications at a particular pharmacy.
For the third quarter, Ely Lilly reported net income of $970.3 million, or $1.07 per share, compared to a net loss of $57.4 million, or 6 cents per share, in the third quarter of 2023. .
Excluding one-time items associated with the value of intangible assets and other adjustments, Eli Lilly posted earnings of $1.18 per share for the most recent quarter.
Revenue increased 20% year-over-year to $11.44 billion.
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