Economic Insights – Company Performance Update
Eli Lilly announced its financial results for the fourth quarter of 2024 on Thursday, revealing revenues that fell short of expectations, despite surpassing profit forecasts.
Fourth Quarter Highlights:
- Profits per share for Q4: $5.32, compared to the anticipated $4.95.
- Revenue for Q4: $13.53 billion versus the expected $13.57 billion.
The pharmaceutical giant reported fourth-quarter revenues of $13.53 billion, reflecting a 45% increase compared to the same quarter in 2023. Eli Lilly’s net income for the period was $4.41 billion, or $4.88 per share, a substantial rise from the $2.19 billion or $2.42 per share recorded during the fourth quarter of 2023.
Excluding one-time items associated with asset valuations and other adjustments, Eli Lilly’s profits amounted to $5.32 per share in Q4 2024.
Following the release of this data, Eli Lilly’s stock rose by more than 1.5% at the opening of Thursday’s trading session on Wall Street.
Sales for the quarter slightly missed expectations due to pricing pressures on Mounjaro, used for diabetes treatment, and Zepbound, intended for weight management. The company had previously noted issues related to inventory reductions among wholesalers.
Looking ahead, Eli Lilly projected profit guidance for fiscal year 2025 within a range of $22.05 to $23.55 per share, aligning with analyst expectations. The company reaffirmed its sales projection for the same year, estimating revenues to fall between $58 billion and $61 billion.
The reported figures align with preliminary results shared in January, which had disappointed investors. Earlier this year, Eli Lilly adjusted its revenue expectations for 2024, indicating that demand for diabetes and weight loss medications would not reach the anticipated levels.
Mounjaro and Zepbound Sales Performance
Mounjaro generated revenues of $3.53 billion in the fourth quarter, representing a 60% increase from the same period last year. However, this total fell short of analysts’ expectations, which had forecasted $3.62 billion in sales.
Eli Lilly attributed the revenue increase primarily to strong demand and improved supply of Mounjaro, although it was partially offset by lower pricing trends.
Similarly, Zepbound yielded sales of $1.91 billion in Q4 2024, below the expected $1.98 billion.
Despite the sales shortfalls, demand for Eli Lilly’s products, including Zepbound and Mounjaro, has significantly outstripped supply in the United States over the past year.
The rising popularity of these medications has prompted competitors, such as Novo Nordisk, to invest heavily in enhancing their manufacturing capabilities. These efforts may be bearing fruit, particularly following the U.S. Food and Drug Administration’s decision in December to confirm the alleviation of supply shortages concerning terzepatide, the active ingredient in Zepbound and Mounjaro.
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