Eli Lilly Shares Down 7.5% as Market Reacts to Slashed Q4 Forecast

GuruFocus.com
01-15

Shares of Eli Lilly (NYSE:LLY) are down 7.6% today, reflecting market disappointment in the company's adjusted guidance for the fourth quarter of 2024. The pharmaceutical giant expects only $13.5 billion in revenue for Q4 2024, compared to the consensus estimate of $13.97 billion.

The main reason for the outlook change is slower-than-anticipated growth in the U.S. incretin market, or in other words, the weight-loss medication industry. Both companies are competing in GLP-1 (Glucagon-like Peptide-1) receptor agonists that help in promoting weight loss.

    BioSpace reported that Eli Lilly faces fierce competition from Novo Nordisk (NYSE:NVO)'s Wegovy and Ozempic, which has led to lower-than-expected demand for Eli Lilly's weight loss and diabetes medications, Mounjaro and Zepbound.

    While Eli Lilly's Mounjaro and Zepbound offer better efficacy in clinical trials, but Novo Nordisk's Ozempic and Wegovy outpaces thanks to its superior marketing. Wegovy was reported deliver $2.54 billion in sales last quarter to Novo Nordisk surprising analysts that came with sales estimation of $2.21 billion only. While Eli Lilly's Zepbound generated $1.26 billion in sales, the number is less than anticipated at $1.69 billion.

    Eli Lilly also mentioned that they were short on channel inventory levels at year-end that also insist the company to lower the guidance for full year 2024.

    Nevertheless, Eli Lilly is highly confident about its further development, projecting revenue for 2025 in the range of $58.0 billion to $61.0 billion.

    This article first appeared on GuruFocus.

    免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

    热议股票

    1. 1
       
       
       
       
    2. 2
       
       
       
       
    3. 3
       
       
       
       
    4. 4
       
       
       
       
    5. 5
       
       
       
       
    6. 6
       
       
       
       
    7. 7
       
       
       
       
    8. 8
       
       
       
       
    9. 9
       
       
       
       
    10. 10