Eli Lilly's Blockbuster Weight-Loss Drug Boosts Annual Forecast

Eli Lilly increased its annual sales forecast by $3 billion after a surge in demand for its weight-loss drug Zepbound. The company's stock rose by 14%, and its 2024 profit forecast was also raised. Lilly's investments in manufacturing capacity are beginning to pay off, with significant gains in market share against rival Novo Nordisk.

Eli Lilly has revised its annual sales forecast upward by $3 billion, driven by a surge in demand for its weight-loss drug, Zepbound. This adjustment has caused the company's shares to jump by up to 14%.

In additional boosts, Lilly has also raised its 2024 profit forecast and reported that Zepbound achieved over $1 billion in sales for the first time in a quarter since its late-2023 launch. This comes as Novo Nordisk, a key competitor, announced disappointing sales and cut its full-year profit forecast. Shares of Eli Lilly reached highs of $877.78, positioning it to add nearly $55 billion to its market value.

Chief Scientific Officer Daniel Skovronsky disclosed that Lilly has invested more than $18 billion to create and update manufacturing facilities since 2020. The results of these investments are now visible, notably the recent $5.3 billion investment in an Indiana site for manufacturing tirzepatide, the active component of Zepbound and Mounjaro.

(With inputs from agencies.)