Eli Lilly Q3 Earnings: Mounjaro Sales More Than Double, Takes $2.98 Billion Hit To Profit, Cuts Annual Outlook, Stock Tanks

On Wednesday, Eli Lilly and Co LLY stock plummeted after the company released worse-than-expected third-quarter earnings and lowered 2024 guidance.

The U.S. pharma giant reported third-quarter revenue of $11.44 billion, up 20% year over year, but it missed the consensus of $12.10 billion.

The increase was driven by a 15% increase in volume and a 6% increase due to higher realized prices, partially offset by a 1% decrease from the unfavorable impact of foreign exchange rates.

The volume increase was primarily driven by growth from Mounjaro and Zepbound, partially offset by the sale of rights for the olanzapine portfolio (Zyprexa) in Q3 2023 and declines in Trulicity.

The company reported an adjusted EPS of $1.18, compared to $0.10 from a year ago and missing the consensus of $1.45.

Mounjaro sales more than doubled to $3.11 billion from $1.41 billion a year ago.

Sales of Verzenio (a breast cancer drug) increased 32% to $1.37 billion, and sales of diabetes drug Jardiance fell 2% to $686.4 million.

Zepbound sales reached $1.26 billion. Trulicity sales fell 22% to $1.30 billion.

Guidance: Eli Lilly forecasts fiscal year 2024 sales of $45.4 billion—$46 billion, compared to prior guidance of $45.4 billion—$46.6 billion and consensus of $46.24 billion.

Eli Lilly lowered its 2024 adjusted EPS guidance to $13.02-$13.52 versus prior guidance of $16.10-$16.60 and consensus of $13.47, driven by the acquired IPR&D charges incurred in Q3.

In Q3 2024, the company recognized acquired in-process research and development (IPR&D) charges of $2.83 billion compared with $2.98 billion in Q3 2023. The Q3 2024 charges were primarily related to the acquisition of Morphic. The Q3 2023 charges were primarily related to the acquisitions of DICE Therapeutics, Versanis Bio, and Emergence Therapeutics.

Price Action: At last check on Wednesday, LLY stock was down 10.50% to $808.75 during the premarket session.

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