The logo at Eli Lilly’s Digital Health Innovation Center facility in Singapore on Thursday, November 14, 2024.
Ore Huiying | Bloomberg | Getty Images
Eli Lilly and Company It cut its revenue guidance on Tuesday as the company said demand for its weight loss and diabetes drugs failed to meet its lofty expectations.
The drugmaker’s shares fell about 6% in early trading Tuesday.
Eli Lilly said it now expects full-year 2024 revenue of about $45 billion. That’s below the company’s valuation of $45.4 billion to $46 billion Expected in October. The new outlook still points to revenue growth of 32% from the prior year.
Eli Lilly expects fourth-quarter revenue of $13.5 billion. That total includes about $3.5 billion for diabetes treatment Mounjaro and $1.9 billion for obesity drug Zepbound, a so-called incretin drug that the company is booming in.
Eli Lilly cuts outlook as it competes with Novo Nordisk and other smaller rivals vying for a share of the exploding weight loss and diabetes drug markets. Eli Lilly is developing a weight-loss drug that is more convenient for patients and easier to make, and Ricks expects it will be approved As soon as early next year.
Analysts polled by London Stock Exchange Group (LSEG) said Wall Street had expected fourth-quarter and full-year revenue of $13.94 billion and $45.49 billion, respectively.
“While the U.S. incretin market grew 45% compared to the same period last year, our previous guidance expected faster growth in the current quarter. This, combined with lower-than-expected year-end channel inventory, resulted in our fourth-quarter results, ” said CEO David Ricks.
The drugmaker also said it expects sales to reach $58 billion to $61 billion in fiscal 2025.
Eli Lilly is expected to report full quarter results on February 6.
