The stock of Eli Lilly (LLY) is down 10% after the pharmaceutical company reported third-quarter financial results that missed Wall Street targets across the board.
The company also reduced its full-year profit guidance as sales of its blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro disappointed.
Eli Lilly announced earnings per share (EPS) of $1.18 U.S., which fell short of the $1.47 U.S. that was expected among analysts.
Revenue in the quarter totaled $11.44 billion U.S., which missed consensus estimates that had called for $12.11 billion U.S. Sales were up 20% from a year earlier.
This was Zepbound’s third full quarter on the U.S. market after winning approval from regulators a year ago. The weight loss drug posted sales of $1.26 billion U.S. in the third quarter, below the $1.76 billion U.S. that had been forecast on Wall Street.
Diabetes treatment Mounjaro posted Q3 sales of $3.11 billion U.S., which was lower than the $3.77 billion U.S. expected among analysts.
However, the poor sales were due to a lack of supply to meet surging demand in the U.S. Demand for Zepbound and Mounjaro continues to outstrip available supply.
The popularity of these new medications has forced Eli Lilly to spend billions of dollars to increase its manufacturing capacity.
Eli Lilly’s supply problems have begun to ease. The U.S. Food and Drug Administration (FDA) recently reported that all doses of Zepbound and Mounjaro are available in the U.S. following extended shortages for most of this year.
Looking ahead, Eli Lilly said that it now expects full-year earnings of $13.02 U.S. to $13.52 U.S. a share, down sharply from previous guidance of $16.10 U.S. to $16.60 U.S. per share.
The drugmaker also lowered its revenue outlook for the year, saying it now expects sales of $45.4 billion U.S. to $46 billion U.S. That’s down from previous guidance of $46.6 billion U.S.
Eli Lilly blamed the lowered guidance on a $2.8 billion U.S. charge it’s taking on the acquisition of bowel disease drugmaker Morphic Holding.
Prior to today (Oct. 30), Eli Lilly’s stock had risen 60% over the past 12 months to trade at $903.58 U.S. per share.
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