Eli Lilly Stock Falls After Zepbound Sales Miss, Full-Year Profit Outlook Cut

Shares of Eli Lilly and Company (LLY) tumbled 7% on Thursday morning after the company reported sales for its popular weight loss drug Zepbound were below estimates and lowered its full year earnings guidance.

Zepbound posted sales of $2.31 billion for the first quarter, up from $517.4 million in the corresponding quarter of 2024, but below market expectations of $2.33 billion, according to Reuters. The rise in revenue from Zepbound was driven by increased demand but offset by lower realized prices, the company said.

Revenue from the company’s diabetes drug Mounjaro, meanwhile, increased 113% to $3.84 billion.

Lilly competes with Danish pharmaceutical company Novo Nordisk in the market for weight loss and diabetes treatments.

The company’s overall revenue for the quarter increased 45% to $12.73 billion driven by volume growth from Mounjaro and Zepbound, and above an analyst estimate of $12.72 billion, as per Koyfin data.

Adjusted earnings per share (EPS) for the quarter came in at $3.34, up from $2.58 in the corresponding quarter of 2024, but below an expected $3.46.

In the three months through the end of March, the company also recognized acquired in-process research and development (IPR&D) charges of $1.57 billion compared with $110.5 million in Q1 2024.

The company reaffirmed its previous 2025 revenue guidance and expects it to be between $58.0 billion and $61.0 billion.

However, the company cut its adjusted earnings per share guidance for full year to $22.50 to $24.00 from its previous forecast of $20.78 to $22.28, driven by the acquired IPR&D charges.

LLY stock is up by about 8% so far this year and by about 8% over the past 12 months.

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