Eli Lilly shares fell sharply in early Wednesday trading after the pharmaceutical giant posted weaker-than-expected third-quarter earnings, while slashing its full-year profit forecast, following disappointing sales of its blockbuster weight loss treatments.
Eli Lilly (LLY) , which has added more than $300 billion in market value this year, largely on the back of investment optimism for its weight loss treatments, saw its two flagship products drive impressive revenue gains over the three months ended in September.
Worldwide revenue rose 20% from the year-earlier period to $11.44 billion, well shy of Wall Street's $12.1 billion forecast, with Mounjaro and Zepbound sales driving a 200%-plus gain for the group's New Products division.
U.S. sales of the treatments, however, were hit by what the company called "inventory decreases in the wholesaler channel," which includes Cardinal Health and McKesson.
Overall, Zepbound sales were $1.26 billion, well shy of the LSEG forecast of $1.69 billion, while Mounjaro sales of $3.11 billion missed Wall Street's $4.2 billion target.
Eli Lilly's bottom line of $1.18 per share was also south of Wall Street's $1.47 forecast, and the group lowered its full-year outlook to between $13.02 and $13.52 per share.
"While the growth of Mounjaro and Zepbound is impressive, we are equally proud of the 17% growth in non-incretin revenue, which includes our oncology, immunology and neuroscience portfolios, compared with Q3 2023 on the same basis," said CEO David Ricks.
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"The new product approvals for Ebglyss and Kisunla, exciting new pipeline data for tirzepatide, donanemab, imlunestrant and lebrikizumab, as well as key milestone achievements in our supply network, all point to the continued expansion of our impact on human health and significant growth of the company ahead," he added.
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Eli Lilly shares, which have gained more than 50% so far this year, were marked 6% lower in early Wednesday trading following the earnings release to change hands at $849.70 each.
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