Lilly Biotechnology Center in San Diego, California, USA on March 1, 2023.
Mike Blake | Reuters
Eli Lilly on Wednesday missed third-quarter profit and revenue expectations and lowered its full-year adjusted profit outlook, sending its stock down about 10%.
Sales of the pharmaceutical giant’s hit products, weight loss drug Zepbound and diabetes treatment Munjaro, were lower than expected, but the company attributed this to lower inventories in the wholesale channel.
The company now expects full-year adjusted earnings of $13.02 to $13.52 per share, down from its previous forecast of $16.10 to $16.60 per share. Eli Lilly noted that its results were impacted by $2.8 billion in acquisition-related costs recorded in the third quarter.
Eli Lilly also lowered the high end of its sales outlook for this year, expecting sales to range from $45.4 billion to $46 billion. The company’s previous guidance had expected revenue of up to $46.6 billion.
Below is a comparison of Eli Lilly’s report for the year ending September 30 with Wall Street expectations, based on a survey of analysts by LSEG.
Earnings per share: $1.18 adjusted vs. $1.47 expected Revenue: $11.44 billion vs. $12.11 billion expected
The company’s third-quarter net income was $970.3 million, or $1.07 per share, and its third-quarter 2023 net loss was $57.4 million, or 6 cents per share.
Excluding one-time items related to the value of intangible assets and other adjustments, Eli Lilly’s most recent quarterly earnings were $1.18 per share.
The company’s third quarter sales were $11.44 billion, an increase of 20% from the same period last year.
U.S. demand last year far exceeded supply of Lilly’s incretin drugs, including Zepbound and Munjaro. Both treatments mimic specific gut hormones to suppress a person’s appetite and regulate blood sugar levels.
The popularity of these injectable drugs has forced Eli Lilly and its main rival, Novo Nordisk, to invest billions of dollars to increase manufacturing capacity for the treatments.
Eli Lilly’s supply problems began to ease earlier this year. As of Wednesday, all doses of Zepbound and Munjaro are available in the U.S., despite long-term shortages, according to the Food and Drug Administration’s drug database. Still, the agency cautions that patients may not be able to immediately fill prescriptions for these drugs at specific pharmacies.
This story is developing. Please check back for the latest information.
