New Products Drive Momentum
The popular diabetes treatment Mounjaro has propelled Eli Lilly beyond expectations for the fourth quarter. The pharmaceutical company anticipates a promising 2024 as new products gain momentum.
Positive Outlook for the New Year
Lilly has unveiled its forecast for the coming year, projecting adjusted earnings between $12.20 and $12.70 per share. The recent launch of their weight-loss drug Zepbound is expected to contribute significantly to this growth.
Strong Performance of Zepbound
Zepbound, a new version of Mounjaro, generated approximately $176 million in sales during the final weeks of the fourth quarter. Analysts predict sales of around $1.9 billion for Zepbound in 2024, with estimates reaching $12 billion in the coming years.
Impressive Sales Increase for Mounjaro
Sales of Mounjaro surged by 65% to $2.21 billion during the fourth quarter compared to the same period the previous year. This remarkable growth underscores the drug’s popularity and the impact it has had on Eli Lilly’s financial performance.
Anticipating FDA Decision on Alzheimer’s Treatment
Eagerly awaiting a decision from the Food and Drug Administration (FDA), Eli Lilly has developed a potential Alzheimer’s treatment called donanemab. Previous research indicates that this drug can modestly slow the mental decline associated with this devastating disease. The introduction of treatments like Leqembi from Eisai has paved the way for advancements in Alzheimer’s treatment.
Strong Financial Results
In the final quarter of 2023, Eli Lilly reported a profit of $2.19 billion, with adjusted earnings of $2.49 per share. Revenue also grew significantly, reaching $9.35 billion, representing a 28% increase. Analysts anticipate adjusted earnings of $2.30 per share on $8.95 billion in revenue.
Market Response
Following these positive results, shares of Eli Lilly experienced a 5% surge to $741.50 in premarket trading on Tuesday. The stock price surpassed $700 for the first time on Monday, setting several new all-time highs this year. Eli Lilly’s shares have soared by over 400% since the start of the decade.
