Eli Lilly strikes deal for cancer treatment, gives timeline for weight loss pill

In the United States, Eli Lilly announced on January 14, 2025, that it has reduced its revenue expectations for 2024 due to disappointing demand for its main obesity and diabetes drugs. Previously expecting revenue between $45.4 billion and $46 billion, the company now anticipates around $45 billion—still a 32% increase from the previous year. CEO Dave Ricks emphasized that the firm has ample supply of its incretin drugs, Mounjaro and Zepbound, and is expanding manufacturing capacity to meet an anticipated growth in demand in the future. Despite the cut in revenue guidance, Eli Lilly's executives remain optimistic regarding their production capabilities and upcoming products. Ricks stated in a CNBC interview that the company plans to produce at least 60% more sellable doses of these drugs in the first half of 2025 compared to the same period in 2024. Moreover, the company has been making significant investments into ramping up production as it seeks to address the increasing demand attributed to the growing popularity of its diabetes treatment and the associated obesity drugs. Moreover, Eli Lilly also finds itself engaged in M&A activities as it has announced the acquisition of Scorpion Therapeutics' experimental cancer treatment in a deal potentially valued at $2.5 billion, contingent on specific regulatory and sales milestones. This move aims to enhance its oncology pipeline with a promising oral treatment that is currently in clinical trials. Ricks anticipates that they will release critical Phase 3 data for this treatment by mid-2025, which could further boost the company's portfolio. In summary, Eli Lilly's lower revenue guidance comes as it navigates supply chain challenges and demand fluctuations in its growing drug markets. While CEO Ricks acknowledges the disappointing demand for 2024, he asserts the company's commitment to investing in its manufacturing capabilities and expanding its product range, which is likely to position the company for future growth. Alongside the expectation of a strong revenue rebound in 2025, Eli Lilly remains focused on innovation and strategic acquisitions to fortify its market standing.