Sales of weight loss drugs fall short of expectations Lilly (LLY.US) cuts full-year guidance

Zai Tong Finance APP noted that Eli Lilly (LLY.US) cut its full-year earnings forecast on Wednesday due to weaker-than-expected sales of its blockbuster weight loss drug, citing inventory issues. The company now expects full-year sales of $45.4 billion to $46 billion, down from the previous $46.6 billion. Eli Lilly has raised its full-year sales forecast twice this year.

Eli Lilly said that Zepbound sales in the quarter were $1.26 billion, below analysts' average estimate of $1.63 billion. All product sales were $11.4 billion, below analysts' average estimate of $12.2 billion.

Eli Lilly said that higher inventory levels of Zepbound and Mounjaro at wholesalers in the previous quarter had weighed on sales.

Eli Lilly reported Q3 revenue of $11.44 billion, up 20.5% YoY, missing market expectations; adjusted EPS of $1.18, below analysts' expectations of $1.51.

Obesity is one of the largest and fastest-growing areas of the pharmaceutical industry, with analysts estimating the weight loss treatment market will reach $130 billion by 2030. Eli Lilly's success in this area has made it one of the world's most valuable pharmaceutical companies.

Its competitors are Novo Nordisk, a Danish company that produces Ozempic and Wegovy. Both companies have struggled to produce enough weight loss drugs to meet what appears to be a growing demand, and both have invested billions of dollars to increase production capacity.