AP Health Writer (AP) — Eli Lilly is dialing back its 2024 forecast after underwhelming Wall Street with third-quarter earnings and sales from two key drugs that missed expectations.
The drugmaker on Wednesday chopped a few dollars off its earnings guidance for the year after raising that forecast well beyond analyst expectations in previous quarters. Company shares tumbled in early trading.
Sales of Lilly’s diabetes treatment Mounjaro and weight loss counterpart Zepbound were hurt in the quarter as pharmaceutical wholesalers whittled inventory they had built up in previous quarters.
The company brought in $3.1 billion in sales from Mounjaro and another $1.3 billion from Zepbound, which debuted in the U.S. market nearly a year ago.
TD Cowen analyst Steve Scala said in a note that both drugs missed expectations, and he wanted to learn more about whether the drop was a “temporary flattening or new trend.”
Lilly also booked higher research and development and marketing, selling and administrative expenses in the quarter.
Overall, the drugmaker earned $970 million, and adjusted results totaled $1.18 per share.
Revenue climbed 20% to $11.44 billion.
Analysts expected earnings of $1.45 per share on $12.09 billion in revenue, according to FactSet.
For the full year, Lilly now forecasts adjusted earnings to range between $13.02 and $13.52 per share. The company had predicted more than $16 per share in August, which was more than $2 higher than consensus at the time.
Analysts now expect adjusted earnings of $13.42 per share.
Shares of Indianapolis-based Eli Lilly and Co. shed $100 in value before markets opened, falling around 11% to $805.
Murphy covers how people and businesses navigate the U.S. health care system. He is a member of AP’s Health and Science team.Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.