Eli Lilly Surpasses Revenue Expectations on Surging Demand for Weight-Loss Drug
Soaring Demand for Mounjaro Boosts Eli Lilly’s Fourth-Quarter Revenue
Eli Lilly’s fourth-quarter revenue exceeded estimates, driven by the surging demand for its weekly diabetes injection, Mounjaro, which is in a competitive race with a rival version from Denmark’s Novo Nordisk in the booming weight-loss medication market.
Exponential Growth in Mounjaro Revenue
Revenue from Mounjaro soared to $2.2 billion in the last three months of 2023, surpassing projections of $1.8 billion, a significant increase from the $279.2 million in the same period in 2022. The U.S. market saw a substantial rise in revenue, reaching $2.11 billion due to higher prices, increasing demand, and favorable changes in rebates and discounts.
Impressive Overall Revenue Figures
Group-wide revenue spiked by 28% to $9.35 billion, surpassing the anticipated $8.96 billion, while adjusted earnings per share saw a nearly 20% jump to $2.49. Gross margin expanded to 80.9%, beating analyst consensus expectations.
Challenges in Meeting Demand
Eli Lilly faced intermittent delays in fulfilling orders of certain Mounjaro doses due to significant demand. The U.S. Food and Drug Administration warned about limited availability of higher doses of Mounjaro through early March, indicating potential supply challenges.
Future Outlook and Projections
Eli Lilly foresees continued high demand for Mounjaro, with the possibility of supply struggling to keep pace. The company projects revenue to reach $40.4 billion to $41.6 billion in 2024, with adjusted full-year income per share estimated to be between $12.20 and $12.70, indicating an upward trend.
Market Response
Shares in Eli Lilly surged in premarket trading following the announcement, showcasing positive investor sentiment and confidence in the company’s growth trajectory.
