The popular diabetes treatment Mounjaro pushed Eli Lilly past fourth-quarter forecasts, and the drugmaker expects 2024 to turn out largely better than expected too, as new products build momentum.
Lilly debuted on Tuesday a forecast for the new year that calls for adjusted earnings ranging from $12.20 to $12.70 per share as its new weight-loss drug Zepbound becomes established following its launch late last year.
Analysts expect earnings of $12.39 per share, according to the data firm FactSet.
Zepound, a new version of Mounjaro, registered about $176 million in sales during the final weeks of the fourth quarter after it became the latest drug approved for a hot area of medicine, chronic weight management.
FactSet says analysts expect around $1.9 billion in sales from Zepbound this year. They see sales climbing to $12 billion in a few years.
Lilly also saw Mounjaro sales climb 65% to $2.21 billion in the fourth quarter compared to the year’s previous quarter.
For 2024, the drugmaker also is awaiting a Food and Drug Administration decision on its potential Alzheimer’s treatment, donanemab. Research has shown that the drug can modestly slow mental decline in patients with the fatal, mind-robbing disease. That hasn't been possible until treatments like Leqembi from the Japanese drugmaker Eisai entered the market the past few years.
In the final quarter of 2023, Lilly booked a $2.19 billion profit. Earnings adjusted for one-time items came to $2.49 per share.
Revenue grew 28% to $9.35 billion.
Analysts expect adjusted earnings of $2.30 per share on $8.95 billion in revenue, according to FactSet.
Lilly shares jumped 5% to $741.50 in premarket trading Tuesday.
The stock price topped $700 for the first time on Monday, and has already set several new all-time high marks just this year. The price of Lilly shares has climbed over 400% since the start of the decade.