Biotech Values

[DewDiligence]

LLY’s 3Q24 shortfall—(yesterday’s news):

https://www.fiercepharma.com/pharma/eli-lillys-tirzepatide-products-come-more-1b-short-expectations

Sales of Eli Lilly’s diabetes and weight loss drugs fell far short of expectations in the third quarter, leading the juggernaut company to reduce its annual revenue guidance and triggering speculation that skyrocketing demand for the blood sugar modulating treatments has maxed out.

In the third quarter, sales of Mounjaro were at $3.11 billion, which came up significantly short of the analyst projection of $3.7 billion. Similarly, sales of obesity drug Zepbound reached $1.26 billion, failing to approach the analyst expectation of $1.7 billion.

…With the lackluster results, the Indianapolis company chopped $600 million from the top end of its annual revenue projection, taking the figure to $46 billion.

...During a conference call, Lilly execs voiced little concern over the sales shortfall.

The stock was down 6% yesterday, erasing about $50B in market cap.

LLY also sharply reduced 2024 guidance for non-GAAP EPS to a range of $13.02-13.52 (down from the prior guidance of $16.10-16.60), but this was mostly due to a non-cash charge for IPR&D.