Eli Lilly’s (LLY) stock price plummeted by more than 7% on Tuesday after the company revealed weaker-than-expected fourth-quarter sales for its GLP-1 drugs. Despite the disappointing update, Jim Cramer believes the dip presents a buying opportunity for quality companies like Eli Lilly.
The pharmaceutical giant lowered its 2024 revenue outlook due to slower-than-anticipated growth in the sales of its popular weight-loss treatment Zepbound and type-2 diabetes drug Mounjaro. Fourth-quarter sales were expected to be $13.5 billion, missing Wall Street estimates of $13.9 billion.
Cramer sees significant potential for GLP-1 drugs, which mimic the naturally occurring hormone GLP-1 to regulate blood sugar and suppress appetite. The market is booming, with some analysts projecting it could reach $100 billion annually by the end of the decade.
Eli Lilly’s CEO David Ricks expressed confidence in the company’s long-term growth prospects, stating that the underlying fundamentals of the GLP-1 market are “incredible.” The company also announced plans to invest more in alleviating supply shortages for its medications, which have been a major issue in recent times.
Cramer recommends taking advantage of the current dip to buy shares of Eli Lilly, citing the company’s strong position in the GLP-1 space and promising future growth prospects. With the midpoint of 2025 sales guidance beating analyst estimates, Cramer believes investors should “get on the horse” with this quality company at a better price.
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Source: https://www.cnbc.com/2025/01/14/how-jim-cramer-would-play-eli-lilly-lly-stock-after-lowered-guidance.html