Eli Lilly Drops 3.76% as Zepbound, Mounjaro Miss Sales Targets
1min read On April 4, 2025, Eli Lilly's stock dropped by 3.76% in pre-market trading, reflecting investor concerns over the company's recent financial performance and market dynamics.
Eli Lilly's third-quarter financial report revealed that its flagship weight-loss drug, Zepbound, failed to meet market expectations. The drug's sales of $12.6 billion fell short of the anticipated $17.6 billion, raising questions about the overall demand for weight-loss medications. Similarly, Mounjaro, another key drug with the same active ingredient, also underperformed, with sales of $31.1 billion against the expected $37 billion. The company attributed these shortfalls to wholesale distributors reducing their inventory levels, which led to a decrease in sales as distributors relied on existing stock rather than purchasing more from eli lilly.
Despite these challenges, Eli Lilly's management remains optimistic about the long-term prospects of its weight-loss drugs. CEO dave Ricks emphasized that the market demand for these medications remains strong, and the company is preparing to launch a comprehensive marketing campaign to boost sales. Additionally, Eli Lilly is investing heavily in its direct-to-consumer website, which offers remote medical prescriptions and home delivery of certain medications, aiming to expand patient access.
Eli Lilly is also focusing on expanding its product pipeline with innovative drugs. The company is developing Retatrutide, a next-generation GLP-1/GIP/GCG triple agonist, which has shown promising results in clinical trials. Retatrutide demonstrated a 17.5% average weight loss at 24 weeks and 24.2% at 48 weeks, outperforming its predecessor, tirzepatide. Eli Lilly is also advancing Orforglipron, an oral GLP-1R agonist, which showed a 14.7% average weight loss in 36 weeks, indicating high patient compliance due to its oral administration.
In the competitive landscape of weight-loss medications, Eli Lilly faces stiff competition from Novartis' Wegovy, which reported strong sales growth of 79% year-over-year, exceeding market expectations. Novartis' success with Wegovy has provided some reassurance to investors about the overall demand for weight-loss drugs, despite Eli Lilly's recent setbacks.
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