Eli Lilly stock slips despite earnings beat, reaffirmed 2025 guidance

Eli Lilly (LLY) reported archetypal 4th net beating Wall Street's expectations Thursday connected the apical and bottommost lines, but GLP-1 income weren't arsenic beardown arsenic expected.

Lilly reported adjusted net per stock of $3.34 compared to statement of $3.10. Revenue came successful astatine $12.73 billion, compared to estimates of $12.67 billion.

The company's banal was trading down astir 5% successful pre-market Thursday. Investors saw income of blockbuster GLP-1s — Mounjaro for diabetes and Zepbound for value nonaccomplishment — travel successful "modestly" up of consensus. The 2 drugs unsocial brought successful a combined $6.1 billion, oregon astir fractional of the gross successful the quarter. Zepbound was up by $32 cardinal portion Mounjaro came successful up by $70 million.

Still, Lilly holds the pb successful the existent contention betwixt first-to-market Novo Nordisk (NVO) for value loss, arsenic Zepbound overtook Wegovy successful caller months. But that could beryllium threatened by an announcement Thursday that 1 of the country's largest pharmacy benefits managers, CVS (CVS), is excluding Zepbound successful favour of Wegovy connected its formulary.

Lilly CEO David Ricks told Yahoo Finance helium is not disquieted astir the PBM determination and is alternatively focusing connected the adjacent procreation of drugs.

"We're good into the merchandise replacement cycle, and there's much to come. We're not funny successful exclusive deals," Ricks said.

"It feels a small spot similar past decade, these benignant of lock-up deals," helium added.

Lilly's play medicine information for Zepbound is up 354% year-over-year, portion Novo's Wegovy is up conscionable 61%. That's based connected the latest medicine tracking information by analytics steadfast IQVIA, which shows full prescriptions for Wegovy astatine 211,103 successful the week of April 18, and Zepbound totaling 338,899 prescriptions successful the aforesaid week.

Lilly inactive lags down Novo successful the diabetes space, with Ozempic accounting for 43% of the marketplace stock portion Mounjaro takes 39%, based connected IQVIA data.

The institution has been ramping up accumulation of the injectable GLP-1s to conscionable ongoing demand. Both Novo and Lilly executives has said successful the past that request volition outstrip proviso for immoderate time. And some companies person seen the FDA instrumentality their drugs disconnected its shortage list, meaning contention from compounding pharmacies — which were allowed to marque copycats of the patented products — volition reduce.

Still, Lilly is present the pb contender for first-to-market successful pill signifier aft Pfizer (PFE) halted its objective proceedings this month.

Meanwhile, arsenic it awaits Trump's determination connected pharmaceutical tariffs, the institution has committed to expanding its accumulation capableness successful the US, to the tune of $27 billion, making the full committedness $50 cardinal since 2020.