Eli Lilly LLY Cuts 2024 Revenue Outlook on Weight Loss Drugs

Eli Lilly Cuts Revenue Guidance Amid Lower-Than-Expected Demand for Weight Loss and Diabetes Drugs

Eli Lilly & Co. cut its revenue guidance on Tuesday, citing lower-than-expected demand for its weight loss and diabetes drugs, Mounjaro and Zepbound. The company’s shares dropped about 6% in early trading.

New Revenue Guidance

Eli Lilly now expects full-year 2024 revenue of around $45 billion, which is lower than the $45.4 billion to $46 billion it anticipated in October. This new outlook would still represent a 32% increase in revenue from the prior year.

Manufacturing Capacity and Supply

The company has been investing heavily to ramp up its manufacturing capacity to meet soaring demand for its incretin drugs. Eli Lilly CEO Dave Ricks stated in an interview with CNBC that the company has "tons of supply coming online" and that "that kind of growth will likely continue." The company plans to add more manufacturing capacity and expects to produce at least 60% more sellable doses of its incretin drugs in the first half of the year compared with the same period in 2024.

Fourth-Quarter Results

For the fourth quarter, Eli Lilly expects $13.5 billion in revenue, which includes about $3.5 billion for Mounjaro and $1.9 billion for Zepbound. This falls short of Wall Street’s expectations, which were $13.94 billion in revenue for the quarter and $45.49 billion for the full year, according to analysts surveyed by LSEG.

Competition and Future Plans

Eli Lilly is competing with Novo Nordisk and other smaller rivals for a share of the growing weight loss and diabetes drug market. The company is developing an obesity pill that would be more convenient for patients and easier to manufacture, and Ricks expects it to be approved as soon as early next year.

Conclusion

Eli Lilly’s revenue guidance cut is a sign that the company is facing challenges in meeting the high demand for its weight loss and diabetes drugs. Despite this, the company remains optimistic about its future prospects, with plans to add more manufacturing capacity and develop new products.

FAQs

Q: Why did Eli Lilly cut its revenue guidance?
A: The company cited lower-than-expected demand for its weight loss and diabetes drugs, Mounjaro and Zepbound.

Q: What is the new revenue guidance?
A: Eli Lilly now expects full-year 2024 revenue of around $45 billion.

Q: What are the company’s plans to meet the high demand for its incretin drugs?
A: Eli Lilly is investing in ramping up its manufacturing capacity and expects to produce at least 60% more sellable doses of its incretin drugs in the first half of the year compared with the same period in 2024.

Q: What is the company’s outlook for 2025?
A: Eli Lilly expects sales of $58 billion to $61 billion in fiscal 2025.