Eli Lilly has revised its forecast for 2024, responding to disappointing third-quarter results that didn’t meet Wall Street expectations for two significant medications. On Wednesday, the pharmaceutical company lowered its earnings guidance for the year by a few dollars after having previously raised it above analyst projections in earlier quarters. This news led to a decline in the company’s stock during early trading.

Sales figures for Lilly’s diabetes medication, Mounjaro, and its weight loss drug, Zepbound, fell short of expectations as pharmaceutical wholesalers reduced their inventories, which had been built up in the earlier months. The company reported $3.1 billion in sales from Mounjaro and an additional $1.3 billion from Zepbound, which made its U.S. market debut nearly a year ago.

Steve Scala, an analyst at TD Cowen, indicated in a note that both of these drugs did not meet market expectations, and he expressed interest in understanding whether this decline represents a temporary issue or signals a new trend in sales.

Additionally, Lilly experienced an increase in expenses related to research and development, as well as higher selling, marketing, and administrative costs during the quarter. Overall, the drugmaker reported a profit of $970 million, resulting in adjusted earnings of $1.18 per share. Revenue increased by 20%, reaching $11.44 billion.

Analysts had anticipated earnings of $1.45 per share along with revenue of $12.09 billion, according to FactSet data. For the entire year, Lilly’s new forecast for adjusted earnings is now between $13.02 and $13.52 per share, down from earlier expectations of over $16 per share in August, which had been more than $2 above the consensus at that time. Current analyst expectations for adjusted earnings are around $13.42 per share.

As a result of the revised forecast, shares of Eli Lilly, headquartered in Indianapolis, saw a significant drop in value, losing $100 before the market opened and falling approximately 11% to a price of $805.