An injection pen of Zepbound, Eli Lilly’s weight reduction drug, is displayed in New York Metropolis, U.S., December 11, 2023.
Brendan McDermid | Reuters
Eli Lilly on Tuesday reported fourth-quarter income and adjusted earnings that topped expectations on the robust launch of its new weight reduction drug, Zepbound, and better costs for its blockbuster diabetes remedy, Mounjaro.
Zepbound, which gained approval from U.S. regulators in early November, raked in $175.8 million in gross sales for the fourth quarter.
The quarterly outcomes are the primary to incorporate gross sales of Zepbound, which some analysts say might put up greater than a billion {dollars} in gross sales in its first yr in the marketplace and finally, develop into the largest drug of all time.
Shares of Eli Lilly have been up about 5% in premarket buying and selling Tuesday.
Here is what Eli Lilly reported for the fourth quarter in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG, previously often called Refinitiv:
- Earnings per share: $2.49 adjusted vs. $2.22 anticipated
- Income: $9.35 billion vs. $8.93 billion anticipated
Eli Lilly posted web earnings of $2.19 billion, or $2.42 a share, for the fourth quarter. That compares with a revenue of $1.94 billion, or $2.14 a share, a yr earlier.
Excluding one-time gadgets related to the worth of intangible property, amongst different changes, the corporate posted a per-share revenue of $2.49 for the fourth quarter of 2023.
The pharmaceutical large booked fourth-quarter income of $9.35 billion, up 28% from the identical interval a yr in the past.
Eli Lilly additionally issued its full-year forecast for 2024, which was typically consistent with expectations.
The corporate expects full-year adjusted earnings of $12.20 to $12.70 per share. Eli Lilly additionally forecast 2024 income of $40.4 billion to $41.6 billion.
Analysts surveyed by LSEG anticipated full-year adjusted earnings of $12.43 per share and gross sales of $39.38 billion.
Shares of Eli Lilly jumped nearly 60% final yr as weight reduction medicine skyrocketed in recognition regardless of hefty worth tags, combined insurance coverage protection and a handful of disagreeable unwanted side effects. With a market cap of roughly $673 billion, Eli Lilly is the most important pharmaceutical firm primarily based within the U.S.
Mounjaro sees larger demand, costs
Increased costs for older medicine, significantly Mounjaro, helped drive up Eli Lilly’s income, the corporate stated. Mounjaro booked $2.21 billion in gross sales for the fourth quarter, up from simply $279.2 million in the identical interval a yr in the past.
Analysts had anticipated the drug to herald $1.73 billion in worldwide gross sales, in response to estimates compiled by FactSet.
That enhance displays elevated demand but additionally “larger realized costs” within the U.S. on account of decreased use of Eli Lilly’s financial savings card applications as entry to the drug continued to increase in the course of the quarter, the corporate stated. The financial savings card applications purpose to assist decrease the out-of-pocket prices for medicine like Mounjaro for sufferers.
Income progress was additionally pushed by gross sales of Eli Lilly’s breast most cancers capsule Verzenio, which rose 42% to $1.15 billion for the quarter on account of elevated demand and better costs.
These outcomes got here in beneath analysts’ expectations, nonetheless, which referred to as for $1.18 billion in gross sales for the interval.
Gross sales of Jardiance, a pill that lowers blood sugar in Sort 2 diabetes sufferers, climbed 30% to $798.1 million for the fourth quarter. Analysts had anticipated $771.8 million in gross sales from Jardiance.
Jardiance, which Eli Lilly shares with Boehringer Ingelheim, is among the many first 10 medicine chosen to face worth negotiations with the federal Medicare program. These worth talks heated up final week after Medicare despatched its preliminary worth provides for every drug to the producers.
In the meantime, Eli Lilly stated larger costs have been offset by decrease costs of its different diabetes medication Trulicity and insulin product Humalog.
Trulicity reported $1.67 billion in income, down 14% from the identical interval a yr in the past. Analysts had anticipated Trulicity to rake in $1.77 billion in gross sales for the quarter.
Humalog noticed $366.6 million in income for the quarter, down 33% from the year-ago interval. Analysts had anticipated the medication to e book $438 million in gross sales, in response to FactSet.
That lower isn’t surprising: Final yr, Eli Lilly stated it could minimize costs of Humalog and one other generally prescribed insulin by 70% and cap month-to-month out-of-pocket prices at $35 at sure retail pharmacies for individuals who have non-public insurance coverage beginning Could 1, 2023.
Eli Lilly will maintain an earnings name with traders at 10:00 a.m. ET on Tuesday.
Executives will possible be requested about whether or not the corporate has made extra progress in addressing the provision points plaguing its weight reduction and diabetes medicine.
There might also be questions associated to the timing of the FDA’s determination on Eli Lilly’s experimental Alzheimer’s drug, donanemab, which considerably slowed the development of the memory-robbing illness in sufferers on the early phases of it.
The corporate didn’t point out the drug in its earnings launch.
That is breaking information. Please examine again for updates.
