Eli Lilly Shares Plunge 11% Amid Earnings Guidance Cut and Zepbound Sales Miss

Eli Lilly & Co. (NYSE: LLY) shares continued to drop Thursday, declining 11% after the pharmaceutical giant posted first-quarter results that, while featuring strong revenue growth, were disappointing to investors with softer-than-expected sales of its best-selling weight loss drug Zepbound and a reduction in its full-year profit estimate.

 

The company posted a 45% year-over-year rise in quarterly revenue to $12.73 billion, powered by robust demand for its obesity and diabetes drug, Mounjaro and Zepbound. However, sales for Zepbound were $2.31 billion, below market expectations and raising concerns over future growth momentum. Additionally, Eli Lilly lowered its full-year adjusted earnings per share guidance, attributing this to higher acquired in-process research and development (IPR&D) charges.

 

Even after confirming its 2025 revenue goal, the combination of the Zepbound sales miss and profit estimate cut prompted a swift selloff, with the firm's shares falling as much as 11% on Thursday.

 

Source: Moomoo