Eli Lilly has revised its 2024 revenue guidance, citing lower-than-expected demand for its weight loss and diabetes drugs. The pharmaceutical giant now anticipates a full-year revenue of approximately $45 billion, a figure that sent its shares tumbling by about 6% in early trading on Tuesday. This adjustment comes amidst the company's strategic focus on developing an obesity pill, expected to gain approval as early as next year, promising greater convenience for patients and easier manufacturing processes.
The company forecasts $3.5 billion in revenue from its diabetes treatment, Mounjaro, and $1.9 billion from its obesity drug, Zepbound, totaling $5.4 billion. Despite these contributions, the anticipated fourth-quarter revenue of $13.5 billion falls short of the $45.4 billion to $46 billion range projected in October. While Wall Street had set expectations at $13.94 billion for the fourth quarter and $45.49 billion for the full year, Eli Lilly's new outlook still signifies a 32% increase from the previous year's revenue.
CEO Dave Ricks remains optimistic about the company's growth trajectory, with plans to expand manufacturing capacity. The company aims to produce at least 60% more sellable doses of its incretin drugs in the first half of 2025 compared to the same period in 2024. Ricks emphasized the company's preparedness for growth with substantial supply coming online.
"that kind of growth will likely continue" – Dave Ricks
Looking further ahead, Eli Lilly projects sales between $58 billion and $61 billion for fiscal 2025, indicating a robust expansion strategy. The U.S. Food and Drug Administration has also declared an end to the shortage of tirzepatide, the active ingredient in Eli Lilly's diabetes and obesity medications, further supporting future growth prospects.
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