Eli Lilly (LLY) missed Wall Street’s revenue expectations in its third-quarter results, released Wednesday morning, sending shares initially down as much as 10% in pre-market trading. The drugmaker also cut its profit forecast and the top end of its revenue outlook for the year.
The company reported revenue of $11.4 billion, below the $12.17 billion estimated by Wall Street. Still, this represented an increase of 20% year-on-year. Profits also fell short by $970.3 million.
Its popular weight loss drug Zepbound and diabetes drug Mounjaro were highlights, as the GLP-1 portfolio remains a pillar in the company’s revenue story. However, Zepbound’s revenue fell short of the $1.7 billion estimated by analysts, with Lilly reporting almost $1.3 billion.
Eli Lilly explained that US sales of the two drugs were “negatively affected by reduced inventory in the wholesale channel.”
The pharmaceutical company’s balance sheet
Lilly reported revenue of $4.3 billion last quarter for both drugs. On Wednesday, total combined sales were $4.4 billion, with Mounjaro bringing in $3.1 billion.
Lilly’s value as a large pharmaceutical company is not solely focused on the GLP-1 market. It is also developing a drug candidate for Alzheimer’s, which could compete with the current market leader, Leqembi, from Biogen (BIIB) and Eisai.
A recent study showed that with lower starting doses, it could lower the risk of brain inflammation, one of the worrying side effects of all Alzheimer’s drugs, including Lilly’s Kisunla, which is currently in late-stage trials. However, the huge potential market for obesity has sent Lilly’s stock soaring in recent years, putting the company on track to possibly become the first healthcare company to reach $1 trillion. Its shares are up more than 50% so far in 2024.
That’s why the company has been working hard to end shortages of its drugs, known for their key ingredient, tirzepatide, although the FDA is considering putting its weight-loss drugs back on the shortage list. Additionally, Lilly launched a direct-to-consumer sales platform that will allow patients who pay cash to access vials of the medication, instead of auto-injectors, at a reduced price.
Source: Ambito
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