Eli Lilly (LLY) reported its fourth quarter and full-year earnings on Thursday, beating Wall Street estimates. The company’s stock surged about 2%. However, the results missed expectations for GLP-1 sales.
The pharmaceutical giant has had mixed results recently. Its FDA-approved GLP-1 tirzepatide drugs were removed from the drug shortage list, but the company revised its fourth quarter guidance lower last month.
In the fourth quarter, revenue increased by 45% to $13.5 billion, primarily driven by sales of its GLP-1 drugs Mounjaro and Zepbound. Mounjaro generated $11.5 billion in revenue, a 124% increase from 2023. Despite the strong performance, Wall Street estimates were not met.
Mizuho’s healthcare sector expert Jared Holz stated that Lilly remains a “preeminent growth story” in large-cap pharma and one of the best in all of healthcare. For the full year, Lilly reported $45 billion in revenue, up 32% from the previous year.
Lilly is focused on long-term prospects beyond diabetes and obesity treatments, which are where investors are most interested. The company has been favored as a potential first trillion-dollar health company due to GLP-1 profits. However, its stock has declined from last year’s highs of $960 per share.
The company is pursuing clinical trials for its GLP-1 drugs in various diseases and has received FDA approval for use as a sleep disorder drug. Orforglipron, a pill option, is awaiting phase III trial results and could be ready for market by 2026.
Analysts expect investors to focus on management commentary around Mounjaro/Zepbound sales and orforglipron’s development timeline. JPMorgan analyst Chris Schott stated that Lilly remains a strong investment opportunity despite the slight miss. He expects the company’s pipeline opportunities, including orforglipron, to drive growth.
Lilly upgraded its 2025 guidance to $58 billion-$61 billion, slightly higher than Wall Street expectations by $1 billion.
Source: https://finance.yahoo.com/news/eli-lilly-reports-mixed-earnings-increases-2025-guidance-133811070.html