Indianapolis-based pharmaceutical giant Eli Lilly reported substantial financial gains in the fourth quarter, with profits climbing to twice their previous levels, driven by strong sales of their diabetes and obesity medications.
The company’s net income reached $4.4 billion, or $4.88 per share, marking a significant increase from $2.2 billion, or $2.42 per share, recorded in the same quarter of the previous year. When adjusted for non-GAAP measures, earnings totaled $4.81 billion, translating to $5.32 per share, surpassing analysts’ projections of $5.11 per share, according to Leerink Partners analyst David Risinger.
Looking ahead to the full year 2025, Eli Lilly projected non-GAAP earnings between $22.50 and $24 per share, aligning with or exceeding market expectations. This forecast proved particularly encouraging as it topped the consensus estimate of less than $23, as noted by Evercore ISI analyst Umer Raffat. The positive outlook drove the company’s stock up nearly 5% during Thursday’s trading, reaching approximately $881 per share.
These results provided welcome reassurance to investors following a January announcement where Lilly admitted to overestimating demand for its weight loss and diabetes products. That revelation had initially caused a nearly 7% drop in the company’s stock price on January 14, when revised revenue guidance was issued for both the fourth quarter and 2025.
The company’s flagship diabetes treatment, Mounjaro, demonstrated remarkable growth with a 60% increase in fourth-quarter sales, reaching $3.5 billion. Meanwhile, their newer obesity medication, Zepbound, generated $1.9 billion in revenue, a dramatic rise from $175.8 million in the fourth quarter of 2023. Lilly aims to capture additional market share from competitor Novo Nordisk in the obesity treatment sector, bolstered by clinical trial results showing Zepbound’s superior weight loss outcomes compared to Novo’s Wegovy.
During an investor conference call, CEO Dave Ricks emphasized the rapid expansion of the incretin drug market, noting that both Mounjaro and Zepbound are gaining market share while still being in the early stages of their commercial launches.
The company maintained its full-year revenue guidance of $58 billion to $61 billion. Following investments in manufacturing capacity, Lilly expects to increase its incretin dose production by at least 60% in the first half of 2025 compared to the same period in the previous year.
The competitive landscape continues to evolve, with both Lilly and Novo Nordisk advancing development of next-generation treatments. Novo recently disclosed details of a new Phase 3 trial for its experimental obesity treatment CagriSema while presenting its own financial results.
Despite initial market concerns in January, Lilly’s stock has more than recovered its losses, benefiting from broader market growth and expanded approval for its inflammatory bowel disease medication Omvoh. The strong performance of its diabetes and obesity drugs, even though slightly below initial expectations for the fourth quarter,
demonstrates significant momentum in these key therapeutic areas.
The company’s focus on manufacturing expansion and continued development of its product pipeline suggests confidence in sustained growth, particularly in the increasingly important market for weight loss and diabetes treatments. With both Mounjaro and Zepbound showing strong commercial potential, Lilly appears well-positioned to maintain its competitive stance in these crucial therapeutic categories.