Lilly scraps guidelines over disappointing sales of weight-loss drugs

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(Bloomberg) – Eli Lilly & Co. on Wednesday cut its full-year guidance after sales of its blockbuster weight loss drug fell short of expectations, which the company blamed on inventory problems.

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The Indianapolis-based drugmaker now expects annual revenue of $45.4 to $46 billion, lowering the high end of previous expectations from $46.6 billion. Lilly had raised its full-year expectations twice this year.

Zepbound’s revenue for the quarter was $1.26 billion, Lilly said in a statement, below the $1.63 billion analysts on average expect. Sales from all products were $11.4 billion, below the average analyst estimate of $12.2 billion.

Lilly said wholesalers had higher inventory of Zepbound and Mounjaro last quarter, which hurt sales.

The company’s shares fell 8% in pre-market trading.

Obesity is one of the largest and fastest growing areas for the pharmaceutical industry. Analysts estimate that the weight-loss treatment market will reach $130 billion by 2030. Lilly’s success in this category has made it the most valuable pharmaceutical company in the world.

It competes with Danish rival Novo Nordisk A/S, the maker of Ozempic and Wegovy. Both have struggled to produce enough shots to meet what appears to be an ever-growing market, and both have invested billions to increase production capacity.

Lilly’s adjusted profit was $1.18 per share in the third quarter, the Indianapolis-based drugmaker said, missing analysts’ estimates of $1.51 per share.

–With help from Antonia Mufarech.

(Updates with additional information throughout.)