The Lilly Biotechnology Center is shown on March 1, 2023 in San Diego, California, US.
Mike Blake | reuters
Eli Lilly Profit and revenue for the third quarter on Wednesday fell short of expectations, driven by disappointing sales of its blockbuster weight-loss drug Zepbound and diabetes treatment Monjaro, and a reduction in its full-year adjusted profit guidance.
The company's stock fell as much as 10% in premarket trading before paring some losses. Shares of its main rival Novo Nordisk fell nearly 4% in premarket trading.
Eli Lilly now expects full-year adjusted earnings of between $13.02 and $13.52 per share, down from previous guidance of $16.10 to $16.60 per share. The drugmaker cited a $2.8 billion charge recorded during the third quarter and related to the acquisition of bowel disease drug maker Morphic Holding as hurting its results.
Eli Lilly also lowered the high end of its revenue outlook for the year and now expects sales between $45.4 billion and $46 billion. The company's previous guidance had called for revenue of more than $46.6 billion.
Here's what Eli Lilly reported for the period ended Sept. 30, compared with Wall Street expectations, based on a survey of LSEG analysts:
- earnings per share: $1.18 adjusted vs. $1.47 expected
- Income: $11.44 billion vs. $12.11 billion expected
The September period was Zepbound's third full quarter in the U.S. market after receiving approval from regulators nearly a year ago. Weekly injection sales during the period were $1.26 billion, according to StreetAccount, below analysts' expectations of $1.76 billion.
Meanwhile, Monjaro posted revenue of $3.11 billion in the third quarter. Analysts expect sales of $3.77 billion for the diabetes treatment, according to StreetAccount.
Demand in the U.S. for Lilly's incretin drugs, such as Zepbound and Monjaro, has far outstripped supply over the past year. Both treatments mimic certain gut hormones to reduce a person's appetite and control their blood sugar.
The popularity of those injectable drugs has forced both Eli Lilly and its main rival, Novo Nordisk, to invest billions to increase manufacturing capacity for the treatment.
Eli Lilly's supply problems began to ease earlier this year. As of Wednesday, the Food and Drug Administration's drug database said all doses of Zepbound and Monzaro are available in the US after an extended shortage. Still, the agency cautions that patients may not always be able to get their prescriptions for those drugs filled immediately at a particular pharmacy.
Eli Lilly reported net income of $970.3 million, or $1.07 per share, for the third quarter, compared with a net loss of $57.4 million, or 6 cents per share, during the third quarter of 2023.
Excluding one-time items related to the value of intangible assets and other adjustments, Eli Lilly reported earnings of $1.18 per share for the most recent quarter.
Revenue increased 20% year over year to $11.44 billion.
This story is developing. Please check back for updates.