Zepbound clocked in sales of US$3.38-billion for the quarter. Analysts were expecting sales of US$2.95-billion.Brendan McDermid/Reuters
Eli Lilly and Company LLY-N raised its full-year profit and sales forecast on Thursday, betting on surging demand for its blockbuster weight-loss drug, Zepbound, as it targets new markets and looks to grab more share from Novo Nordisk’s Wegovy.
However, shares of the U.S. drugmaker fell over 10 per cent to US$671.54 in premarket trading after data from its oral weight loss drug, orforglipron, disappointed investors.
Orforglipron helped patients lose 12.4 per cent of their weight on average after 72 weeks, less than the 14.9 per cent weight loss seen in a previous trial of Novo’s Wegovy over 68 weeks and below what analysts were expecting.
Lilly competes with Danish drugmaker Novo Nordisk in the fast-growing market for weight-loss drugs known as GLP-1 agonists. These drugs are expected to bring in US$150-billion in industry-wide revenue over the next decade.
Novo said on Wednesday that it expects continued competition from copycat versions of its blockbuster obesity drug this year and could face layoffs as it battles rising pressure from its main U.S. rival Lilly.
Novo Nordisk expands lawsuits in U.S. against weight-loss drug compounders
Weekly U.S. prescriptions were at 418,597 for Zepbound and at 281,725 for Wegovy for the week ended July 25, according to IQVIA data provided by analysts.
Lilly said its share of the U.S. market for incretins, the class of drugs to which diabetes drug Mounjaro and weight-loss drug Zepbound belong, increased to 57 per cent during the quarter.
Sales of Mounjaro came in at US$5.20-billion for the second quarter, compared with analysts’ expectations of US$4.74-billion, according to data compiled by LSEG.
Zepbound clocked in sales of US$3.38-billion for the quarter. Analysts were expecting sales of US$2.95-billion.
The company now expects to earn US$21.75 to US$23 per share on an adjusted basis this year, compared with its previous forecast for a profit of US$20.78 to US$22.28 per share.
The U.S. drugmaker now expects annual sales of US$60-billion to US$62-billion, compared with its previous forecast of US$58-billion and US$61-billion. Analysts were expecting revenue of about US$60-billion and profit of US$21.74 per share for 2025.