Eli Lilly Stock Plummets 6% After Sluggish Weight Loss Drug Sales

Eli Lilly and Company (NYSE: LLY) shares plummeted by 6% on Tuesday, January 14, 2025, after the pharmaceutical giant cut its fourth-quarter revenue outlook due to sluggish sales of its weight loss drugs, Mounjaro and Zepbound. The company now expects fourth-quarter revenue of approximately $13.5 billion, around $400 million below the low end of its previously issued guidance. This revision comes as the U.S. incretin market grew at a slower pace than anticipated, and channel inventory at year-end was lower than expected.



Eli Lilly's CEO, David Ricks, acknowledged the slower-than-expected growth in the U.S. incretin market and the lower-than-anticipated channel inventory at year-end as the primary factors contributing to the company's Q4 results. Despite the setback, the company remains optimistic about its financial and operational performance in 2025, projecting revenue growth contributions from new Lilly medicines, approvals of new indications for existing medicines, and launches of Mounjaro in additional worldwide markets.



The company's revised 2024 revenue guidance is approximately $45.0 billion, representing a 32% increase compared to the previous year. For 2025, Eli Lilly anticipates revenue between $58.0 billion and $61.0 billion, indicating a growth rate of 32% at the midpoint compared to expected 2024 revenue. Despite the recent setback, Eli Lilly's long-term prospects remain strong, driven by its robust pipeline of new medicines and strategic initiatives to boost sales of its weight loss drugs.

In conclusion, Eli Lilly's stock price decline and revised revenue guidance reflect the challenges faced by the company in the fourth quarter of 2024. However, the company's strategic initiatives and robust pipeline position it well for future growth. Investors should closely monitor Eli Lilly's progress and consider the potential benefits and risks associated with the company's weight loss drug portfolio.