Eli Lilly leaps as weight-loss-drug sales drive earnings and 2024 outlook
Eli Lilly's market value is more than $100 million north of Tesla's.
Updated at 8:35 AM EST
Eli Lilly (LLY) - Get Free Report posted better-than-expected fourth-quarter earnings Tuesday, while issuing a robust near-term outlook, thanks in part to surging sales of its diabetes and weight-loss treatments, which continue to offset a slump in revenue for its legacy diabetes drug Trulicity.
Eli Lilly said adjusted profit for the three months ended in December were $2.49 a share, a 19% increase from the same period in 2022 and firmly ahead of the Wall Street consensus forecast of $2.22 a share. Group revenue, Eli Lilly said, rose 28% from a year earlier to $9.35 billion, beating analysts' consensus forecast of an $8.93 billion tally.
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Eli Lilly's new Mounjaro drug, which targets obesity and could challenge the early market dominance of Novo Nordisk's Ozempic, produced sales of $2.21 billion. Zepbound sales were pegged at $175.8 million.
Trulicity saw sales were down 14% from 2022 levels at $1.67 billion. Taltz, its treatment for severe plaque psoriasis, saw sales rise 11% to $709 million.
Looking into the current financial year, Eli Lilly said, non-GAAP earnings would likely rise to between $12.20 and $12.70 a share with revenue in the region of $40.4 billion and $41.6 billion.
"2023 was a year of tremendous achievement for Lilly, which delivered life-changing medicines to more patients than ever before resulting in strong revenue growth," said CEO David Ricks.
"We advanced our pipeline of new medicines for serious diseases and created new partnerships and innovative ways of collaborating to add to that pipeline," he added. "Lilly invested in the quality, reliability and resilience of our supply chain with new advanced manufacturing plants and lines in the U.S. and in Europe."
"Entering 2024, we remain focused on the opportunity in front of us, to help solve some of the most challenging healthcare problems in the world and make life better for millions of patients," Ricks said.
Eli Lilly shares were marked 5% higher immediately following the earnings report to indicate an opening-bell price of $741.44 each, a move that would extend its three-month gain to around 24%.
“Our focus remains on type 2 diabetes drug Mounjaro, which generated Q4 sales that crushed (the Wall Street) consensus by over 26%," said Lee Brown, global sector lead for healthcare at global research firm Third Bridge. "We believe the launch of LillyDirect will help to accelerate market uptake for both Mounjaro and Zepound given available rebates for patients without insurance coverage for the drugs.”
“Importantly, LillyDirect may encourage pharmacy benefit managers to expand coverage, particularly for Zepound, going into 2025 as managed care organizations consider how to market and price plans,” he added.
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