Eli Lilly lowers profit outlook despite soaring sales from weight loss drugs

In the United States, Eli Lilly reported strong financial performance for the first quarter of 2025, with sales from its weight loss and diabetes medications, Zepbound and Mounjaro, significantly exceeding expectations. The company's revenue reached $12.73 billion, marking a 45% increase compared to the previous year, driven largely by a 49% increase in U.S. sales, which totaled $8.49 billion. Moreover, Mounjaro achieved impressive revenue of $3.84 billion, a 113% increase year-over-year, while sales of Zepbound reached $2.31 billion, more than quadrupling its previous revenue of $517.4 million during the same quarter last year, when it had just entered the market. Despite these soaring sales, Eli Lilly revised its full-year profit guidance downward, now forecasting adjusted earnings per share between $20.78 and $22.28, down from an earlier forecast of $22.50 to $24. This adjustment was influenced by a substantial $1.57 billion charge associated with a recent acquisition of an oral cancer drug from Scorpion Therapeutics. While the company maintained its revenue guidance for fiscal 2025 at between $58 billion and $61 billion, it highlighted that this outlook takes into account existing tariffs imposed by former President Donald Trump but not any forthcoming pharmaceutical import levies. Importantly, the demand for both Zepbound and Mounjaro continues to outstrip supply, indicating strong consumer interest in these incretin treatments that help with weight loss and blood sugar regulation. As a response to this high demand, Eli Lilly and its competitor, Novo Nordisk, have invested significantly in ramping up manufacturing capacity for these products. The FDA recently confirmed the U.S. shortage of tirzepatide, the active ingredient in both medications, has ended, which is expected to alleviate some supply chain pressure. As a result of these developments, even with rising sales figures, Eli Lilly's shares saw a 5% decrease in premarket trading. The company reported a net income of $2.76 billion, equating to $3.06 per share for the first quarter, compared to a net income of $2.24 billion or $2.48 per share from the prior year, reflecting the challenges and complexities faced in the current pharmaceutical landscape.