Eli Lilly has cut its full-year revenue guidance ahead of an investor conference after sales of its GLP-1 drugs fell short of expectations. The company now expects revenue to be approximately $13.5 billion for the fourth quarter and $45 billion for the full year 2024, down from a previous forecast of $46 billion.
The revenue shortfall was largely due to weaker-than-expected scripts for diabetes in December, despite typical strong demand during the month. Analysts had projected Q4 revenue of $13.94 billion and full-year revenue of $45.49 billion.
Despite this miss, Eli Lilly’s GLP-1 drugs remain a key driver of growth, with sales forecast to be $3.5 billion for Mounjaro and $1.9 billion for Zepbound in 2024. The company has spent heavily to increase manufacturing capacity, and it expects to ship 60% more doses in the first half of 2025 compared to the previous year.
Eli Lilly’s international market is a significant opportunity, but pricing in these markets is lower due to regulatory differences. The company also reported strong sales of its non-incretin drugs, up 20% in the quarter, and expects several new drugs to drive revenue growth in 2025.
Analysts say investors can look to buy Eli Lilly stock at current levels, citing a valuation that is “very cheap” with a price/earnings ratio below 1.
Source: https://www.fool.com/investing/2025/01/18/eli-lilly-stock-tumble-slow-drug-sales-buy