Eli Lilly raised its annual sales forecast by $3 billion after increased manufacturing capacity for its weight-loss drug Zepbound, driving its shares up 14%. The company also boosted its 2024 profit forecast and reported Zepbound sales exceeding $1 billion for the first time in a quarter since its launch.
Eli Lilly’s popular obesity and diabetes drugs, Mounjaro and Zepbound, are facing ongoing shortages that are limiting their supply and impacting the company’s earnings. According to analysts, these shortages could result in lower revenue and earnings per share for the first quarter. The company is working to ramp up manufacturing to meet the demand, but the impact on earnings remains a concern. Investors will be watching for updates on manufacturing capacity, pricing, and coverage decisions from insurers as they assess the impact on Lilly’s financial performance.
North Carolina is facing financial strain due to the high cost of popular weight loss drugs, prompting the state to stop providing coverage and negotiate directly with manufacturers. Negotiations are ongoing, but patients are concerned about the impact on their health and access to medication.
Tony Genua, a seasoned portfolio manager with over four decades of experience, shares his insights on the US market and highlights his bullish stance. Emphasizing the role of innovation and macroeconomic shifts in shaping market leadership, Genua highlights the importance of identifying companies with strong R&D and the ability to adapt to changing economic conditions. He also discusses the potential impact of the US election, rising earnings, and the influx of funds from money market investments. Genua provides specific examples of companies he favors, including Nvidia for its dominance in AI chipsets, Amazon for its cloud computing prowess, Eli Lilly for its obesity drug and drug pipeline, and Cheniere Energy and Marathon for their contributions to cleaner fossil fuels and air travel, respectively.
