When Eli Lilly, a titan in the pharmaceutical industry, reveals its quarterly financial results on Tuesday, investors will be keenly observing the trajectory of sales for its groundbreaking obesity drug.
With Eli Lilly’s stock soaring by an impressive 82% over the past 12 months and experiencing a 26% surge so far this year, both investors and the broader public have shown extraordinary enthusiasm for the company’s weight-loss medication, Zepbound, marketed as Mounjaro for treating Type 2 diabetes.
Following the late approval of Zepbound by the Food and Drug Administration last year, fourth-quarter sales reached a notable $176 million. Analysts are bullish about the future of Zepbound and Mounjaro, projecting combined sales to exceed $40 billion by 2029, according to FactSet. Some analysts even speculate that peak combined sales could reach an astonishing $100 billion annually.
However, in the short term, supply constraints present a significant challenge to sales growth. Both Eli Lilly and its competitor Novo Nordisk have grappled with meeting the overwhelming demand for their weight-loss injections, leading to potential shortages for certain patients.
While these near-term hurdles may temper immediate expectations, the long-term outlook for the stocks remains robust. Analyst Geoff Meacham from Bank of America, for instance, remains optimistic about Lilly’s metabolic franchise despite manufacturing and access challenges. Meacham believes that annual combined sales of Zepbound and Mounjaro could exceed $60 billion by 2030.
Market analysts anticipate Eli Lilly to report first-quarter earnings of $2.47 per share from sales amounting to $8.9 billion. Zepbound sales are expected to reach $373 million, with Mounjaro sales projected at $2.1 billion.
Encouraging developments surrounding Zepbound and Mounjaro have bolstered investor confidence in recent months. In mid-April, the company announced successful results from a Phase 3 study demonstrating the drug’s efficacy in treating sleep apnea, potentially widening its accessibility. Approval of the drug for sleep apnea treatment could offer a pathway to coverage for individuals without Type 2 diabetes, as previously outlined by Barron’s.
Eli Lilly has scheduled a call to discuss its financial results with investors and analysts at 10 a.m. Eastern on Tuesday, providing further insights into its performance and future prospects in the pharmaceutical landscape.