Why Eli Lilly's Weight-Loss Drug Sales Missed the Mark

Eli Lilly, a company based in Indianapolis, recently faced a blow when its stock prices dipped. The reason? Their weight-loss drugs, Zepbound and Mounjaro, didn't sell as well as expected. The company predicted they'd make about $13. 5 billion in the December quarter, which is less than what experts thought. Specifically, Mounjaro made $3. 5 billion, and Zepbound made $1. 9 billion, both falling short of estimates. For 2025, Eli Lilly expects to make between $58 billion to $61 billion, which is slightly higher than what experts predicted. The company will reveal more details about their financial performance on February 6.

Analysts like Srikripa Devarakonda from Truist Securities believe the stock might struggle in the short term, but the company's 2025 guidance is above average estimates. The competition in the weight-loss drug market is intense, with many companies racing to develop new drugs. Earlier this year, Eli Lilly spent $2. 5 billion to buy a cancer drug from Scorpion Therapeutics. In the past, their earnings and sales have sometimes missed expectations too. For example, in the September quarter, their earnings were $1. 18 per share, which was lower than what experts predicted.

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