Eli Lilly results surpass expectations courtesy Zepbound, Mounjaro

Eli Lilly, America’s largest drugmaker, reported its fourth-quarter results yesterday that surpassed expectations, driven by the increasing demand for its obesity drug, Zepbound, and blockbuster diabetes treatment, Mounjaro.

The pharma giant reported $9.35 billion in Q4 revenue and a 13% increase in quarterly profits compared to the same period in 2022.

Zepbound’s remarkable sales of $175.8 million in the fourth quarter alone added to the company’s December quarter success. Eli Lilly was also able to charge more for Mounjaro after drugmakers decided to hike the prices of roughly 700 medications.

Analysts predict Zepbound could post more than a billion dollars in sales in its first year of launch.

The company surpassed Tesla in market cap last month.

Outlook for 2024
The company anticipates accelerated revenue growth in the second half of 2024. It also expects to meet the growing demand for Mounjaro and Zebbound as it will have a new plant this year in North Carolina.

Challenges
While higher prices and increased demand boosted revenue, diabetes drug Trulicity's revenue dropped by 14% and Humalog’s 33%, attributed partly to price reductions.

Despite the better-than-expected revenues, the company’s executives are worried that the Danish pharmaceutical Novo Nordisk (Ozempic-maker) and Catalent deal could impact Lilly’s ability to make drugs.

Looking ahead, Eli Lilly awaits FDA approval for their Alzheimer’s drug, donanemab.