Lilly Q1 Revenue Surges 45% YoY to $12.73B, Adjusted Net Income Rises 29% to $3B; Shares Fall 7.7% Amid Cuts to 2025 Profit Outlook

Eli Lilly reported Q1 revenue of $12.73bln, up 45% YoY, driven by strong sales of its weight-loss drugs Mounjaro and Zepbound. However, shares fell as much as 7.7% after the company trimmed its 2025 profit forecast to $20.78-$22.28 per share, citing charges related to its acquisition of in-process R&D. Despite reaffirming its revenue guidance, investors are concerned about increased competition in the weight-loss market.

Eli Lilly and Company (LLY) reported a robust first quarter (Q1) 2025, with revenue surging 45% year-over-year (YoY) to $12.73 billion. The company's key products revenue grew by $4.09 billion to $7.52 billion, driven primarily by the strong performance of its weight-loss drugs Mounjaro and Zepbound. Mounjaro sales jumped 113% to $3.84 billion, while Zepbound sales reached $2.31 billion, up 396% from the previous year [1].

The U.S. revenue increased 49% to $8.49 billion, with Mounjaro and Zepbound leading the charge. Outside the U.S., revenue grew 38% to $4.24 billion, driven by Mounjaro and Jardiance, Lilly's previous generation diabetes medication. The company also reported an adjusted earnings per share (EPS) of $3.34, compared to $2.58 from a year ago, beating the consensus of $3.02 [1].

However, shares of LLY fell as much as 7.7% after the company trimmed its 2025 profit forecast to $20.78-$22.28 per share. The reduction was attributed to charges related to the acquisition of in-process research and development (IPR&D) from Scorpion Therapeutics, totaling $1.57 billion for the quarter. The acquisition of Scorpion's PI3Kα inhibitor program STX-478, which is being evaluated for breast cancer and other advanced solid tumors, is expected to add to Lilly's pipeline and capabilities [1].

Despite reaffirming its full-year 2025 revenue guidance between $58 billion and $61 billion, investors are concerned about increased competition in the weight-loss market. Lilly's CEO David Ricks noted that the threat of tariffs is already bringing back critical supply chains into important industries, including pharmaceuticals, but he was not sure if additional tariffs were necessary [1].

Eli Lilly's strong Q1 results underscore the company's leadership in the weight-loss and diabetes treatment markets. However, the impact of increased competition and the costs associated with the acquisition of Scorpion Therapeutics will continue to be closely watched by investors [2].

References:
[1] https://www.benzinga.com/general/biotech/25/05/45136276/mounjaro-maker-eli-lilly-clocks-45-jump-in-q1-revenue-cuts-2025-profit-outlook-but-not-due-to-tariffs
[2] https://www.biospace.com/business/lillys-revenue-leaps-45-thanks-to-zepbound-mounjaro-of-course