Yet that’s exactly what pharma-celebrity Eli Lilly, our biggest drug maker, reported in their phenomenal first-quarter-2023 financial statement. The skyrocketing need for its obesity treatments — Mounjaro and Zepbound — fueled these incredible results. In the first quarter, the company recorded a net income of $2.76 billion, or $3.06 per share. That’s a huge jump from last year’s $517.4 million at the same time last year. This increase represents, at minimum, a fourfold increase in profitability. That tops $2.24 billion, or $2.48 per share, the company earned at the same time last year.
In dollar amounts, Eli Lilly expected sales for Mounjaro to reach $3.81 billion and Zepbound $2.28 billion. Zepbound nonetheless produced phenomenal $2.31 billion in sales this quarter. This number exceeded market predictions and highlighted fierce consumer appetite. This unprecedented demand for these relatively low-cost drugs has outstripped available supply in the United States over the past year.
Lilly’s U.S. sales jump of 49% to $8.49 billion was a big driver of the impressive performance. The company’s fiscal 2025 sales guidance now stands at an impressive range of $58 billion to $61 billion, marking a substantial 113% increase from the previous year’s guidance.
Even with all the good sales news, Eli Lilly’s adjusted earnings guidance range for adjusted earnings in fiscal 2025 has been lowered. The new earnings guidance raised the range to $20.78 and $22.28 per share. This is down from their previous estimate of $22.50 to $24 per share. This change contributed to a 5% drop in Eli Lilly’s stock in premarket trading.
In response to current market dynamics, Eli Lilly CEO Dave Ricks commented on the ongoing challenges faced by the industry, stating, “I think that actually the threat of tariffs is already bringing back critical supply chains into important industries, chips and pharma.” Ricks posed a rhetorical question regarding tariffs: “So do we need to enact [tariffs?]”
The recent stock performance of Eli Lilly emphasizes the success of Eli Lilly’s product launches. It spotlights the company’s strategic emphasis on addressing supply chain challenges impacting the pharma industry. The company’s ability to maintain its fiscal 2025 sales guidance amid these challenges underscores its resilience and commitment to growth.
Eli Lilly will be positioned for even more success as the pharmaceutical landscape rapidly shifts. Leading the charge are innovative new treatments and growing consumer demand for solutions to help Americans achieve sustainable, long-term weight loss.