Eli Lilly Drops 3.34% as Zepbound Sales Miss Expectations

On April 9, 2025, Eli Lilly's stock dropped by 3.34% in pre-market trading, reflecting investor concerns over the company's third-quarter financial performance, particularly the underwhelming sales of its flagship weight-loss drug, Zepbound.

Eli Lilly's third-quarter earnings report revealed that Zepbound's sales fell short of market expectations, generating only $12.6 billion compared to the anticipated $17.6 billion. This shortfall was attributed to wholesale distributors reducing their inventory levels, which led to a decrease in sales. Despite this setback, Eli Lilly's CEO, Dave Ricks, reassured investors that the demand for Zepbound remains robust and that the company is planning to ramp up marketing efforts in November.

In response to the disappointing sales figures, some analysts have suggested that the inventory reduction may only account for a small portion of the revenue decline. However, others, including those from Citigroup and Jefferies, have expressed confidence in Eli Lilly's long-term prospects, citing the company's strong pipeline and potential for future growth.

Despite the challenges faced by Zepbound, Eli Lilly continues to invest in its research and development efforts, with several promising drugs in the pipeline. The company is also exploring the expansion of its weight-loss drug market to include individuals who are not yet overweight but are at risk of becoming so.