Eli Lilly reported a significant increase in profits during the fourth quarter, largely fueled by its successful diabetes and obesity medications. The pharmaceutical company also provided an optimistic forecast for 2025 that largely exceeded industry expectations.
In the last quarter of 2024, sales of Mounjaro, Lilly’s leading diabetes therapy, surged by 60% to reach $3.53 billion. Meanwhile, Zepbound, its obesity treatment, generated $1.9 billion in revenue. While these figures did not quite meet Wall Street predictions, they align with the projections Lilly provided in its previous updates.
The company also saw robust performance from its breast cancer medication, Verzenio, which recorded a revenue increase of 36%, bringing in $1.55 billion.
Overall, Eli Lilly’s profits for the quarter soared to $4.41 billion, while revenue rose 45% to $13.53 billion, matching market expectations. Adjusted earnings per share amounted to $5.32, surpassing the anticipated $5.01 as per a survey conducted among industry analysts by FactSet.
Mounjaro and Zepbound belong to a new class of medications known as GLP-1 receptor agonists, which have gained worldwide popularity due to their effectiveness in weight loss. These products compete directly with Novo Nordisk’s Ozempic and Wegovy, which also reported impressive sales figures recently.
For the full year of 2024, Mounjaro’s sales skyrocketed to $11.54 billion, while Zepbound generated $4.9 billion in its inaugural year of sales. Analysts predict that Mounjaro will bring in over $18 billion in revenue in the current year, while Zepbound is expected to surpass $10 billion, particularly following its recent approval as a treatment for specific sleep apnea cases in the U.S.
Experts believe that ongoing regulatory approvals and Lilly’s ambitions to ramp up manufacturing will drive sustained growth for these medications, as noted by Edward Jones analyst John Boylan in a recent research update.
Looking ahead to 2025, Eli Lilly anticipates adjusted earnings in the range of $22.50 to $24 per share, with revenue projected between $58 billion and $61 billion. Analysts are predicting earnings of $22.77 per share and total revenue of $58.8 billion for that year.
On Thursday morning, shares of Eli Lilly rose by approximately 2% to $857.40, amid a mixed performance in broader trading indices. So far this year, Lilly’s stock has appreciated by 9% as of Wednesday.
