Eli Lilly reported a surprising jump in fourth-quarter revenue and earnings thanks to the successful launch of its new weight loss drug, Zepbound, and increased prices for its blockbuster diabetes drug, Mounjaro. Zepbound, approved by U.S. regulators in early November, brought in $175.8 million in sales for the quarter. Experts believe it has the potential to generate over a billion dollars in sales during its first year on the market and emerge as the biggest drug of all time. Despite concerns about expensive price tags, mixed insurance coverage, and some unpleasant side effects, weight loss drugs have gained popularity, leading to Eli Lilly’s substantial revenue boost.
The pharmaceutical giant reported a quarterly revenue of $9.35 billion, up 28% from the same period a year ago. They also issued a full-year forecast for 2024, which was largely in line with expert expectations. Eli Lilly expects full-year adjusted earnings of $12.20 to $12.70 per share, with a predicted revenue range of $40.4 billion to $41.6 billion. Additionally, the company will face questions during an investor earnings call, particularly about supply issues for its weight loss and diabetes drugs and the timing of the FDA’s decision on Eli Lilly’s experimental Alzheimer’s drug, donanemab. Despite these uncertainties, Eli Lilly’s unprecedented fourth-quarter performance has solidified its position as the largest pharmaceutical company in the United States.
