Eli Lilly on Wednesday feel short of profit and revenue for the third quarter weighed down by sales of its blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro.
Skyrocketing demand for injectable weight loss and diabetes drug has forced both Eli Lilly and main rival Novo Nordisk to invest billion to spike manufacturing capacity.
The drugmaker slashed full year profit guidance to range of $13.02 to $13.52 per share.
Elli Lilly on Wednesday fell short of revenue and profit expectation for third quarter weighed down by disappointing sales of its blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro and its full year adjusted profit guidance.
Eli Lilly lowered the high end of its revenue outlook for year and now expect sales of between $45.4 billion and $46 billion.
The September period was Zep Bound third full quarter on US market after winning approval from regulators almost a year before.
The weekly injection raked in $1.26 billion in sales for period below $1.76 billion analysts expected according to StreetAccount.
Eli Lilly supply start to ease this year. The Food and Drug Administration drug diabetes said all doses of Mounjaro and Zepbound are available in US after long shortages.
Patients may not always be able to fill their prescription for those drugs at special pharmacy.
The company stock over 12% in morning trading. Shares of Nova Nordisk fell over 3%.
Eli Lilly lowered the high end of its revenue outlook for year and now expects sales of between $45.4 billion and $46 billion.
The company guidance called for revenue as $46.6 billion.
Mounjaro posted $3.11 billion in revenue for third quarter over double what it booked in same time a year before.
Analysts expected $33.77 billion in sales for diabetes treatment according to Street Account.
The September time was Zepbound third full quarter on US market after approval from regulators almost a year before.
Demand in the US has far outpaced supply for Lilly incretin drugs like Mounjaro and Zepbound over past year.
Both treatment mimic gut hormone to tamp down a person appetite and regulate blood sugar.
Eli Lilly supply worries start to ease earlier this year. The Food and Drug Administration drug database add all doses of Zepbound and Mounjaro are available in US after shortages.
The agency warns that patients may not be fill their prescription for those drugs at particular pharmacy.
The FDA decision to remove tirzepatide the active ingredient in zepbound and Mounjaro from its list has drawn fierce opposition for compounding pharmacies that make customized and cheaper alternatives to Eli Lilly branded drugs.
Pharmacies are calling for the FDA to reconsider its decision as both Eli Lilly and Novo Nordisk tried to crack down on unapproved version of top selling drugs.
For the third quarter Ely Lilly record net income of $970.3 million or 1.07 per share compared with net loss of $57.4 million or 6 cents per share during third quarter of 2023.
Eli Lilly posted earning of $1.18 per share for most recent quarter.