Eli Lilly’s weight-loss drug revenues miss expectations due to lower prices

The company cut its annual adjusted profit forecast to between $20.78 and $22.28 per share from its previous expectation of between $22.50 and $24.00 per share. Picture: Larry Cummins.

Eli Lilly posted better-than-expected quarterly results, although sales of its popular weight-loss drug Zepbound came in slightly below estimates.

The success of Lilly’s diabetes and weight-loss treatments, much of which is manufactured at the company’s facility in Kinsale, has led Eli Lilly to become the world’s most valuable healthcare company, with a market capitalisation of over $800bn (€702.2bn).

Zepbound posted sales of $2.31bn for the first quarter. Lilly said lower prices for the drug impacted revenue, but demand remained strong.

The company cut its annual adjusted profit forecast to between $20.78 and $22.28 per share from its previous expectation of between $22.50 and $24.00 per share.

Sales of diabetes drug Mounjaro came in at $3.84bn (€3.4bn) while analysts were expecting sales of $3.8bn (€3.3bn), according to data compiled by LSEG.

On an adjusted basis, Lilly earned $3.34 per share for the quarter, compared with analysts’ estimates of $3.02 per share. Total revenue was $12.73bn (€11.2bn) for the quarter ended March 31, compared with expectations of $12.67bn (€11.1bn).

Separately, US pharmacy giant CVS said its pharmacy benefit management unit would drop Lilly’s Zepbound as a preferred product from its list of drugs eligible for reimbursement from July 1.

• Reuters