Eli Lilly's Weight-Loss Drugs Succeed, But Stock Falls Amid Concerns Over Clinical Trial Results

Eli Lilly reported Q2 sales of $5.2bn for Mounjaro and $3.4bn for Zepbound, exceeding analyst estimates. However, investors are wary of the company's 148-year-old pharmaceutical business and its recent clinical trial results for an oral GLP-1 pill, which showed significant weight loss but not as high as expected. Despite this, Novo Nordisk shares surged over 7% after a disappointing earnings report. Eli Lilly's stock fell 14% to its lowest price in over a year.

Eli Lilly and Company (NYSE: LLY) reported its second-quarter (Q2) 2025 financial results, highlighting robust sales growth and pipeline advancements. The company's revenue increased by 38% to $15.56 billion, driven primarily by volume growth from Zepbound and Mounjaro [1]. Key highlights include:

- Mounjaro: Revenue for Mounjaro, a GIP/GLP-1 dual agonist, surged 68% to $5.198 billion, driven by strong demand in both the U.S. and international markets.
- Zepbound: Revenue for Zepbound, a once-weekly GLP-1 receptor agonist, jumped 172% to $3.38 billion, primarily due to increased demand in the U.S.

Despite these impressive sales figures, investors expressed concern about the company's 148-year-old pharmaceutical business and its recent clinical trial results for an oral GLP-1 pill, which showed significant weight loss but not as high as expected. This skepticism contributed to a 14% drop in Eli Lilly's stock, marking its lowest price in over a year.

In contrast, Novo Nordisk shares surged over 7% following a disappointing earnings report, suggesting that investor sentiment is complex and influenced by various factors beyond financial performance.

Eli Lilly's Q2 2025 earnings per share (EPS) increased by 92% on a reported basis and 61% on a non-GAAP basis, primarily driven by strong sales growth and improved gross margin. The company also raised its 2025 full-year revenue guidance to the range of $60 billion to $62 billion, reflecting robust underlying business performance [1].

While the company's financial results are promising, the market's reaction underscores the importance of clinical trial outcomes and investor confidence in pharmaceutical companies' long-term prospects. Eli Lilly's recent acquisitions, including SiteOne Therapeutics and Verve Therapeutics, aim to bolster its pipeline and expand its offerings, which could influence future performance [1].

References:
[1] https://investor.lilly.com/news-releases/news-release-details/lilly-reports-second-quarter-2025-financial-results-and-raises