In a strong demonstration of the booming weight loss drug market, Eli Lilly reported a remarkable doubling of its fourth-quarter profits, driven by explosive growth in its diabetes and obesity medication sales. The Indianapolis-based pharmaceutical giant saw its net income surge to $4.4 billion, or $4.88 per share, up from $2.2 billion, or $2.42 per share, in the same period last year.
Strong Financial Performance and Market Response
The company's non-GAAP earnings reached $4.81 billion, or $5.32 per share, exceeding analyst expectations of $5.11 per share. The positive earnings report sparked investor confidence, sending Lilly's shares up nearly 5% to approximately $881 in Thursday's midday trading.
Looking ahead, Lilly provided an optimistic outlook for 2025, projecting non-GAAP earnings between $22.50 and $24.00 per share, meeting or surpassing analyst consensus of below $23. The company maintained its full-year revenue guidance of $58-61 billion.
Explosive Growth in Diabetes and Obesity Portfolio
The company's diabetes medication Mounjaro demonstrated remarkable performance, with quarterly sales jumping 60% to reach $3.5 billion. Zepbound, Lilly's newer entry in the obesity market, generated impressive revenue of $1.9 billion, showing substantial growth from $175.8 million in the previous year's fourth quarter.
CEO Dave Ricks expressed confidence in the trajectory of these products, stating, "The market for these incretin drugs continues to grow rapidly, and Mounjaro and Zepbound are both gaining share. We believe both products are still very early in their launch cycle."
Manufacturing Expansion and Market Competition
To meet the growing demand for its incretin drugs, Lilly has made significant investments in manufacturing capabilities. The company expects to increase its production capacity by at least 60% in the first half of 2025 compared to the same period in the previous year.
In the competitive obesity market, Lilly is actively challenging Novo Nordisk's position following favorable results from a head-to-head trial that demonstrated superior weight loss outcomes for Zepbound compared to Novo's Wegovy. This competition continues to intensify as both companies develop next-generation treatments, with Novo Nordisk recently announcing details of a new Phase 3 trial for its experimental obesity drug CagriSema.
