We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eli Lilly and Company (LLY - Free Report) reported third-quarter 2024 adjusted earnings per share (“EPS”) of $1.18, which missed the Zacks Consensus Estimate of $1.52 per share. In the year-ago quarter, the company had reported earnings of 10 cents per share.
Adjusted earnings included an acquired in-process research and development (IPR&D) charge of $3.08 per share, primarily related to the acquisition of Morphic, which was closed in August.
Revenues of $11.44 billion rose 20% year over year. Total revenues, however, missed the Zacks Consensus Estimate of $12.03 billion.
LLY’s Mounjaro and Zepbound Sales Miss
Lilly’s most popular products are its tirzepatide medicines, diabetes drug Mounjaro and weight loss medicine, Zepbound. However, sales of these drugs disappointed due to inventory issues, per Lilly.
Mounjaro recorded sales of $3.11 billion during the quarter compared with $3.09 billion in the previous quarter. The reported sales figure missed the Zacks Consensus Estimate as well as our model estimate of $3.70 billion.
Mounjaro sales benefited from increased demand and improved supply in the United States, partially offset by inventory decreases in the wholesaler channel. International sales benefited from the launch of Mounjaro KwikPen in various markets, which boosted volumes.
Zepbound, which was launched in November 2023, recorded sales of $1.26 billion in the quarter compared with $1.24 billion in the previous quarter. Zepbound revenues missed our model estimate of $1.50 billion. Zepbound sales were hurt by inventory decreases in the wholesaler channel.
Both Mounjaro and Zepbound include the same compound tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA). The GLP-1 segment is an important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity.
Lilly’s tirzepatide medicines face strong competition from Novo Nordisk’s (NVO - Free Report) semaglutide. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Wegovy sales have also remained strong. Novo Nordisk will report its third-quarter results on Nov. 6. Shares of NVO declined around 3% in pre-market trading on Wednesday after Lilly reported its results.
LLY’s Key Drugs’ Sales Numbers
Among the growth products, Trulicity generated revenues worth $1.3 billion, down 22% year over year. Sales declined 26% in the United States and 12% in international markets due to decreased volumes, primarily due to competitive dynamics. Sales of Trulicity beat the Zacks Consensus Estimate of $1.13 billion and our model estimate of $1.1 billion.
Jardiance sales declined 2% to $686.4 million as increased demand was offset by lower realized prices. Jardiance missed the Zacks Consensus Estimate of $822.0 million as well as our model estimate of $823.3 million.
Taltz brought in sales of $879.6 million, up 18% year over year, driven by higher pricing and increased demand in the United States, partially offset by unfavorable wholesaler buying patterns. Taltz beat the Zacks Consensus Estimate as well as our model estimate of $837.0 million.
Verzenio generated sales of $1.37 billion in the reported quarter, up 32% year over year, on increased demand, partially offset by unfavorable wholesaler buying patterns. Verzenio sales missed the Zacks Consensus Estimate of $1.38 billion as well as our model estimate of $1.43 billion.
Emgality generated revenues of $202.9 million in the quarter, up 20% year over year. Olumiant (baricitinib) generated sales of $250.8 million, up 8% on a year-over-year basis.
New drug Jaypirca recorded $81.1 million in sales compared with $92.4 million in the previous quarter. New drugs Omvoh and Ebglyss recorded sales of $40.5 million and $14.9 million, respectively, in the quarter, compared with $25.6 million and $4.3 million, respectively, in the previous quarter.
In July, Lilly won a long-awaited FDA approval for Kisunla (donanemab) for treating early symptomatic Alzheimer's disease. Kisunla was approved in Japan in September. Kisunla is the second drug on the market to treat Alzheimer's disease after Biogen (BIIB - Free Report) and its Japan-based partner Eisai’s Leqembi. Lilly did not announce any sales numbers for Kisunla in the third-quarter earnings release.
LLY Lowers 2024 Revenue & Earnings Guidance
Lilly lowered the upper end of its previous revenue guidance while significantly trimming its earnings expectations. The total revenue guidance range was lowered from $45.4 billion to $46.6 billion to $45.4 billion to $46.0 billion.
The earnings per share guidance was lowered from a range of $16.10 to $16.60 per share to $13.02 to $13.52 to include IPR&D charges.
Our Take on LLY’s Q3 Results
Lilly’s third-quarter results were weaker than expected as it missed estimates for earnings and sales and also lowered its financial guidance for the year. Sales of several key drugs, Mounjaro, Zepbound, Jardiance and Verzenio, missed expectations.
Shares crashed more than 11% in pre-market trading. Lilly’s tremendous success with Mounjaro and Zepbound made it the biggest drugmaker in the world, with a market cap of more than $800 million. Mounjaro and Zepbound’s big sales miss disappointed investors, causing the stock to plummet.
Lilly’s stock has risen 55.0% so far this year compared with an increase of 17.6% for the industry.
Image Source: Zacks Investment Research
Lilly faced supply constraints for its incretin-based products like Trulicity, Mounjaro and Zepbound in the first half of 2024. Demand for Mounjaro and Zepbound has been extremely strong and exceeded supply. The weekly prescription volume of Mounjaro and Zepbound was volatile in the first half of the year due to challenges in fulfilling high demand. On the second-quarter conference call, Lilly said it has invested in new advanced manufacturing plants and lines in the United States and Europe, which had improved supply. With the increase in production volumes, channel dynamics and stocking levels in the United States improved, which boosted volume growth in the second quarter. However, along with the third-quarter results, Lilly said that due to higher wholesaler inventory levels at the end of the second quarter, Mounjaro and Zepbound sales in the third quarter were negatively impacted by inventory decreases in the wholesaler channel.
The company also said that it is balancing demand and supply of Mounjaro and Zepbound and the launch of the drugs in international markets.
The Zacks Consensus Estimate for Novartis’ earnings has risen from $7.50 to $7.55 per share for 2024 over the past 30 days, while that for 2025 has risen from $8.21 per share to $8.32 per share. Novartis’ shares have risen 9.5% year to date.
Novartis beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 2.22%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lilly's Q3 Earnings Miss, Mounjaro, Zepbound Disappoint, Stock Tanks
Eli Lilly and Company (LLY - Free Report) reported third-quarter 2024 adjusted earnings per share (“EPS”) of $1.18, which missed the Zacks Consensus Estimate of $1.52 per share. In the year-ago quarter, the company had reported earnings of 10 cents per share.
Adjusted earnings included an acquired in-process research and development (IPR&D) charge of $3.08 per share, primarily related to the acquisition of Morphic, which was closed in August.
Revenues of $11.44 billion rose 20% year over year. Total revenues, however, missed the Zacks Consensus Estimate of $12.03 billion.
LLY’s Mounjaro and Zepbound Sales Miss
Lilly’s most popular products are its tirzepatide medicines, diabetes drug Mounjaro and weight loss medicine, Zepbound. However, sales of these drugs disappointed due to inventory issues, per Lilly.
Mounjaro recorded sales of $3.11 billion during the quarter compared with $3.09 billion in the previous quarter. The reported sales figure missed the Zacks Consensus Estimate as well as our model estimate of $3.70 billion.
Mounjaro sales benefited from increased demand and improved supply in the United States, partially offset by inventory decreases in the wholesaler channel. International sales benefited from the launch of Mounjaro KwikPen in various markets, which boosted volumes.
Zepbound, which was launched in November 2023, recorded sales of $1.26 billion in the quarter compared with $1.24 billion in the previous quarter. Zepbound revenues missed our model estimate of $1.50 billion. Zepbound sales were hurt by inventory decreases in the wholesaler channel.
Both Mounjaro and Zepbound include the same compound tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA). The GLP-1 segment is an important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity.
Lilly’s tirzepatide medicines face strong competition from Novo Nordisk’s (NVO - Free Report) semaglutide. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Wegovy sales have also remained strong. Novo Nordisk will report its third-quarter results on Nov. 6. Shares of NVO declined around 3% in pre-market trading on Wednesday after Lilly reported its results.
LLY’s Key Drugs’ Sales Numbers
Among the growth products, Trulicity generated revenues worth $1.3 billion, down 22% year over year. Sales declined 26% in the United States and 12% in international markets due to decreased volumes, primarily due to competitive dynamics. Sales of Trulicity beat the Zacks Consensus Estimate of $1.13 billion and our model estimate of $1.1 billion.
Jardiance sales declined 2% to $686.4 million as increased demand was offset by lower realized prices. Jardiance missed the Zacks Consensus Estimate of $822.0 million as well as our model estimate of $823.3 million.
Taltz brought in sales of $879.6 million, up 18% year over year, driven by higher pricing and increased demand in the United States, partially offset by unfavorable wholesaler buying patterns. Taltz beat the Zacks Consensus Estimate as well as our model estimate of $837.0 million.
Verzenio generated sales of $1.37 billion in the reported quarter, up 32% year over year, on increased demand, partially offset by unfavorable wholesaler buying patterns. Verzenio sales missed the Zacks Consensus Estimate of $1.38 billion as well as our model estimate of $1.43 billion.
Emgality generated revenues of $202.9 million in the quarter, up 20% year over year. Olumiant (baricitinib) generated sales of $250.8 million, up 8% on a year-over-year basis.
New drug Jaypirca recorded $81.1 million in sales compared with $92.4 million in the previous quarter. New drugs Omvoh and Ebglyss recorded sales of $40.5 million and $14.9 million, respectively, in the quarter, compared with $25.6 million and $4.3 million, respectively, in the previous quarter.
In July, Lilly won a long-awaited FDA approval for Kisunla (donanemab) for treating early symptomatic Alzheimer's disease. Kisunla was approved in Japan in September. Kisunla is the second drug on the market to treat Alzheimer's disease after Biogen (BIIB - Free Report) and its Japan-based partner Eisai’s Leqembi. Lilly did not announce any sales numbers for Kisunla in the third-quarter earnings release.
LLY Lowers 2024 Revenue & Earnings Guidance
Lilly lowered the upper end of its previous revenue guidance while significantly trimming its earnings expectations. The total revenue guidance range was lowered from $45.4 billion to $46.6 billion to $45.4 billion to $46.0 billion.
The earnings per share guidance was lowered from a range of $16.10 to $16.60 per share to $13.02 to $13.52 to include IPR&D charges.
Our Take on LLY’s Q3 Results
Lilly’s third-quarter results were weaker than expected as it missed estimates for earnings and sales and also lowered its financial guidance for the year. Sales of several key drugs, Mounjaro, Zepbound, Jardiance and Verzenio, missed expectations.
Shares crashed more than 11% in pre-market trading. Lilly’s tremendous success with Mounjaro and Zepbound made it the biggest drugmaker in the world, with a market cap of more than $800 million. Mounjaro and Zepbound’s big sales miss disappointed investors, causing the stock to plummet.
Lilly’s stock has risen 55.0% so far this year compared with an increase of 17.6% for the industry.
Image Source: Zacks Investment Research
Lilly faced supply constraints for its incretin-based products like Trulicity, Mounjaro and Zepbound in the first half of 2024. Demand for Mounjaro and Zepbound has been extremely strong and exceeded supply. The weekly prescription volume of Mounjaro and Zepbound was volatile in the first half of the year due to challenges in fulfilling high demand. On the second-quarter conference call, Lilly said it has invested in new advanced manufacturing plants and lines in the United States and Europe, which had improved supply. With the increase in production volumes, channel dynamics and stocking levels in the United States improved, which boosted volume growth in the second quarter. However, along with the third-quarter results, Lilly said that due to higher wholesaler inventory levels at the end of the second quarter, Mounjaro and Zepbound sales in the third quarter were negatively impacted by inventory decreases in the wholesaler channel.
The company also said that it is balancing demand and supply of Mounjaro and Zepbound and the launch of the drugs in international markets.
LLY’s Zacks Rank & Stock to Consider
Eli Lilly currently has a Zacks Rank #3 (Hold).
Eli Lilly and Company Price and Consensus
Eli Lilly and Company price-consensus-chart | Eli Lilly and Company Quote
A large drugmaker worth considering is Novartis (NVS - Free Report) , which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Novartis’ earnings has risen from $7.50 to $7.55 per share for 2024 over the past 30 days, while that for 2025 has risen from $8.21 per share to $8.32 per share. Novartis’ shares have risen 9.5% year to date.
Novartis beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 2.22%.