Eli Lilly (NYSE:LLY) reported strong Q4 2024 results on Thursday, surpassing Wall Street estimates, driven by a more than twofold increase in sales of its weight loss and diabetes drugs Mounjaro and Zepbound.
The Indiana-based drugmaker had preannounced its Q4 figures in January and set its full-year revenue forecast at $58 billion to $61 billion, below analyst expectations. Despite this, shares have rebounded with the company reiterating its revenue outlook and providing adjusted earnings guidance of $22.50 to $24.00 per share for 2025 in line with consensus.
Sales of GLP1 therapy tirzepatide marketed as Mounjaro for diabetes and Zepbound for weight loss reached $5.4 billion reflecting 128% year-over-year growth. Nonincretin revenue climbed 20% year-over-year fueled by diabetes drug Jardiance ($1.2 billion with 50% growth) and breast cancer therapy Verzenio ($1.6 billion with 36% growth).
However Type 2 diabetes medication Trulicity saw sales decline 25% year-over-year to $1.3 billion due to pricing pressures and rising competition. Overall LLY's total revenue surged 45% year-over-year in Q4 boosting full year revenue by 32% to $45 billion. The company's gross margin improved by 1.3 percentage points to 82.2% while net income more than doubled to $4.4 billion.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.