Eli Lilly is making big waves in the pharmaceutical world. They recently shared impressive fourth-quarter earnings that exceeded what analysts expected. Their weight loss drug, Zepbound, and diabetes treatment, Mounjaro, are driving this success.
For 2026, Lilly predicts revenues between $80 billion and $83 billion. Analysts had estimated around $77.62 billion. They also forecast adjusted earnings of $33.50 to $35 per share, slightly above the predicted $33.23.
A few days ago, CEO Dave Ricks spoke on CNBC about how expanded government Medicare coverage for obesity treatments could significantly boost the market. He described it as a “big multiplier” for patient eligibility.
Lilly’s outlook stands in contrast to rival Novo Nordisk, which is facing challenges like lower U.S. prices. Both companies made significant deals with the Trump administration to reduce drug costs for diabetes and obesity treatments. Unlike Lilly, Novo has warned of declining sales and profits this year, particularly as they lose exclusivity in key markets.
Lilly aims to keep its edge in the fast-growing GLP-1 drug market as Novo launches its new obesity pill, Wegovy. Lilly is also hoping to get approval for its oral weight loss drug, orforglipron, soon.
In the latest quarter, Mounjaro generated $7.41 billion, marking a 110% increase from the previous year. U.S. sales reached $4.1 billion despite reduced prices. Zepbound, launched just three years ago, brought in $4.2 billion, a 122% year-over-year increase.
Here’s a snapshot of Lilly’s fourth-quarter performance compared to analyst predictions:
- Earnings per share: $7.54 adjusted vs. $6.67 expected
- Revenue: $19.29 billion vs. $17.96 billion expected
Their shares climbed over 7% in premarket trading after these results.
The company reported $19.29 billion in revenue for the fourth quarter, a 43% rise from the same period last year. U.S. revenue hit $12.9 billion, driven by a significant increase in prescriptions for Mounjaro and Zepbound, though pricing was lower.
Net income stood at $6.64 billion, or $7.39 per share for the fourth quarter—up from $4.41 billion, or $4.88 per share, a year earlier. After adjusting for certain items, earnings were at $7.54 per share.
Lilly’s agreements with the Trump administration aim to lower prices for Medicare and Medicaid patients by 2026. In return, they’ll receive tariff exemptions for three years.
In the CNBC interview, Ricks acknowledged there would be a short-term dip in pricing but emphasized that he expects significant growth in volume later this year.
The ongoing changes in the pharmaceutical landscape, especially regarding pricing and government policies, could greatly impact how these companies shape the future of healthcare.
For more on drug pricing agreements and their implications on the pharmaceutical market, you can explore trusted sources like KFF.
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