Eli Lilly Sees Q4 Boost from Strong Obesity Drug Sales, Stock Surges Over 3%

Company Raises 2025 Earnings Guidance by 7% Amid Growing Demand for Obesity Medications

Eli Lilly, the U.S.-based pharmaceutical giant, reported stronger-than-expected earnings for the fourth quarter of 2024, driven by robust demand for its obesity treatment drugs. While revenue slightly missed market forecasts, the company’s optimistic 2025 earnings guidance fueled a more than 3% surge in its stock price, reflecting investor confidence in its long-term growth prospects.

On February 6 (local time), Eli Lilly announced that its Q4 revenue reached $13.53 billion, marking a 45% increase compared to the same period last year. Although this figure fell slightly short of the market expectation of $13.57 billion, the company’s adjusted earnings per share (EPS) surpassed forecasts, hitting $5.32 against an expected $4.95. Net income more than doubled, reaching $4.41 billion, showcasing the company’s strong profitability amid rising demand for its key products.

Despite exceeding Wall Street’s EPS estimates, Eli Lilly’s revenue fell short primarily due to lower pricing for its diabetes drug, Mounjaro. Analysts pointed out that inventory reductions by wholesale distributors for both Mounjaro and the obesity drug Zepbound contributed to the revenue miss for the second consecutive quarter. Nonetheless, Mounjaro’s sales climbed 60% year-over-year to $3.53 billion, although this figure was slightly below the analyst consensus of $3.62 billion, according to data from StreetAccount.

Eli Lilly attributed the revenue growth to strong global demand and increased supply capacity for Mounjaro. However, the company acknowledged that changes in rebate and discount estimates during Q4 2023 led to a decline in the drug’s average selling price, partially offsetting the overall sales growth.

Looking ahead, Eli Lilly raised its 2025 earnings guidance, projecting EPS in the range of $22.05 to $23.55, representing an approximate 7% increase from previous estimates. The company also lifted its revenue outlook from $58 billion to $61 billion, citing expectations for expanded availability of Mounjaro across multiple international markets throughout the year.

CFO Luca Montars emphasized the sustained growth in prescriptions for obesity treatments, stating, “We expect the prescription growth trend observed last year to continue, which is reflected in our updated market guidance.” His comments highlight the company’s confidence in the ongoing demand for its metabolic health portfolio.

In a move that further excited investors, Eli Lilly announced plans to release late-stage clinical trial data for its next-generation obesity drug, retatrutide, earlier than anticipated—by the end of this year. Retatrutide is garnering attention for its potential to deliver superior weight-loss outcomes by simultaneously targeting three receptors: glucose-dependent insulinotropic polypeptide (GIP), glucagon-like peptide-1 (GLP-1), and glucagon (GCG). This triple-action mechanism is expected to set a new standard in obesity treatment, potentially expanding Eli Lilly’s dominance in the fast-growing market for weight management therapies.

Following the earnings report, Eli Lilly’s stock closed at $870.37, up 3.35% from the previous trading session, reflecting strong investor optimism about the company’s growth trajectory fueled by its expanding obesity drug pipeline and improved financial outlook.