Eli Lilly Raises Sales Forecast by $2 Billion for Weight-Loss Drug Zepbound
Eli Lilly has seen a surge in demand for its weight-loss drug Zepbound, leading to the company raising its annual sales forecast by $2 billion. The increased demand and manufacturing capacity for Zepbound have caused shares of the pharmaceutical giant to rise nearly 6%.
To meet the high demand for Zepbound and its related diabetes drug Mounjaro, significant production increases are expected in the second half of the year. Both drugs are currently facing shortages due to the overwhelming demand. In response, Eli Lilly is acquiring a manufacturing facility and expanding production sites in Germany and North Carolina.
The market value of Eli Lilly has surpassed that of companies like Tesla and Walmart, all thanks to the increasing demand for Mounjaro and Zepbound. Both drugs are GLP-1 agonists originally developed for diabetes treatment.
The U.S. FDA has warned that most doses of Zepbound and Mounjaro will be in shortage through the second quarter of the year. Despite falling behind Novo Nordisk’s weight-loss drug Wegovy in total prescriptions, Eli Lilly remains optimistic about its revenue and profit forecast for 2024.
Lilly expects revenue to range from $42.4 billion to $43.6 billion and has raised its profit forecast to $13.50 to $14 per share. The company reported an adjusted profit of $2.58 per share, surpassing analysts’ expectations by 12 cents.
Investors have taken notice of Eli Lilly’s success, with shares jumping 5.8% following the announcement of the increased sales forecast and manufacturing capacity. It seems that the future looks bright for Eli Lilly as it continues to meet the growing demand for its innovative drugs.
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