Eli Lilly (LLY) earnings Q1 2025

Eli Lilly on Thursday reported first-quarter income and earnings that topped estimates as demand for its weight reduction and diabetes medication soared, however lowered its full-year revenue steering resulting from fees associated to a current most cancers therapy deal.

The pharmaceutical big now expects its adjusted fiscal 2025 earnings to come back in between $20.78 and $22.28 per share, down from earlier steering of $22.50 to $24 per share. Eli Lilly mentioned the revision displays a $1.57 billion deal cost recorded within the first quarter, which is primarily associated to its acquisition of a sure oral most cancers drug from Scorpion Therapeutics.

The corporate maintained its fiscal 2025 gross sales steering of $58 billion to $61 billion. Eli Lilly mentioned the steering displays President Donald Trump‘s current tariffs as of Might 1, however doesn’t embrace his deliberate levies on prescribed drugs imported into the U.S.

In an interview with CNBC, Eli Lilly CEO Dave Ricks mentioned the corporate and different drugmakers are already saying investments in U.S. manufacturing, which is without doubt one of the Trump administration’s said targets of the tariffs.

“I believe that truly the specter of tariffs is already bringing again essential provide chains into vital industries, chips and pharma,” Ricks mentioned. “So do we have to enact [tariffs?] I am not so certain.”

He added that Eli Lilly needs to see completely decrease tax charges within the U.S., notably 15% for home manufacturing. Ricks mentioned decrease taxes drove many drugmakers to fabricate in “low-tax islands like Eire Singapore and in Switzerland, and that may come again if there’s an financial incentive.”

Eli Lilly’s blockbuster diabetes therapy Mounjaro topped expectations for the primary quarter, raking in $3.84 billion in income. That is up a whopping 113% from the identical interval a yr in the past.

The corporate’s weight reduction drug Zepbound additionally beat estimates, reserving $2.31 billion in gross sales for the quarter. That greater than quadrupled the $517.4 million that the therapy introduced in a yr in the past, when it had simply entered the U.S. market.

Analysts anticipated Mounjaro and Zepbound to generate $3.81 billion and $2.28 billion in gross sales, respectively, in response to estimates from StreetAccount.

Shares of Eli Lilly fell greater than 9% on Thursday. That got here after CVS Well being on Thursday mentioned its pharmacy profit supervisor would make Novo Nordisk’s Wegovy the popular weight reduction medicine on its predominant formularies as an alternative of Zepbound.

This is what Eli Lilly reported for the primary quarter in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by LSEG: 

• Earnings per share: $3.34 adjusted vs. $3.02 anticipated
• Income: $12.73 billion vs. $12.67 billion anticipated

The corporate posted first-quarter income of $12.73 billion, up 45% from the identical interval a yr in the past. 

Gross sales within the U.S. jumped 49% to $8.49 billion. Eli Lilly mentioned that was pushed by a 57% improve in quantity – or the variety of prescriptions or items offered – for Zepbound and Mounjaro. That was partially offset by decrease realized costs of the medication, the corporate mentioned.

The pharmaceutical big booked web revenue of $2.76 billion, or $3.06 per share, for the primary quarter. That compares with web revenue of $2.24 billion, or $2.48 share, a yr earlier. 

Excluding one-time objects related to the worth of intangible belongings and different changes, Eli Lilly posted earnings of $3.34 per share for the primary quarter.

Demand within the U.S. has nonetheless far outpaced provide of Zepbound and Mounjaro during the last yr. Each so-called incretin remedies mimic sure intestine hormones to tamp down an individual’s urge for food and regulate their blood sugar.

The recognition of these injectable medication has pressured each Eli Lilly and its rival Novo Nordisk to speculate billions to ramp up manufacturing capability for his or her remedies.

The efforts look like paying off: The Meals and Drug Administration in December reaffirmed its choice to declare the U.S. scarcity of tirzepatide — the energetic ingredient in Zepbound and Mounjaro — over. That call successfully bars many compounding pharmacies from advertising and promoting cheaper, unapproved variations of tirzepatide.