Eli Lilly reported adjusted earnings per share of $5.32, beating expectations of $5.11.
Revenue came in at $13.53bn, slightly below the expected $13.56bn. But the real stars of the show were its weight-loss drugs – sales of Mounjaro hit $3.53bn, whereas Zepbound brought in $1.91bn.
On top of that, the company raised its 2025 revenue forecast to between $58.0 and $61.0bn — a strong signal of confidence moving forward.
Meanwhile, Novo Nordisk revealed in its Q4 earnings report that sales of Wegovy jumped by 86% last year, whereas revenue for its other leading obesity and diabetes drug, Ozempic, rose 26%. Novo shares increased by nearly 5% off the back of the annual results.
AvaTrade’s chief market analyst, Kate Leaman, comments on what these reports mean for the companies and the wider pharmaceutical industry:
Eli Lilly is solidifying its dominance in the weight-loss and diabetes drug space. The strong performance of both Mounjaro and Zepbound puts major pressure on competitors like Novo Nordisk, the maker of Wegovy and Ozempic.
The impact on the stock from Eli Lilly’s earnings report was also noticeable. Its shares jumped more than 2% – given the company’s strong performance and optimistic outlook, this momentum could continue.
Industry wide, this success is likely to accelerate research and development in weight-loss treatments.
Other pharmaceutical companies will want a piece of this booming market and may start ramping up investments in similar drugs.
There is also a supply chain challenge; demand for these medications is outpacing supply.
That means Eli Lilly, and the industry as a whole, will likely focus on increasing production capacity to keep up. Beyond that, the weight-loss drug market itself could expand.
More doctors and patients are becoming aware of these treatments and, as they gain acceptance, the potential market size keeps growing.
As for competition, Novo Nordisk has been dominating with Wegovy and Ozempic, but Eli Lilly’s strong showing could shift market share, possibly even impacting Novo’s stock.
With regards to the bigger picture, this kind of success can drive more innovation in biotech – not just in obesity treatments but also in areas like immuno-oncology.
One thing to watch out for is regulatory attention. The rapid rise and overwhelming demand for these drugs might bring increased scrutiny, leading to potential new guidelines or regulations.
The bottom line is that Eli Lilly’s earnings don’t just signal strength for the company; they’re shaping industry trends, market dynamics, and investment strategies for years to come.