Anti-obesity drugs drive revenue growth for Eli Lilly in Q4 2023

Eli Lilly's anti-obesity drugs, Mounjaro and Zepbound, are fuelling the company's growth, showed the company’s financial report for Q4 2023 released on Tuesday. Revenue from "New Products," primarily driven by these two medications, saw a significant 219% year-over-year increase, reaching $2.49 billion. 

This surge outpaced even established "Growth Products" like Verzenio and Jardiance, suggesting a potential shift in focus for the pharmaceutical giant, with anti-obesity solutions set to become a major growth driver.

Mounjaro, a GLP-1 receptor agonist for weight management, saw its revenue skyrocket to $2.21 billion compared to $279.2 million in Q4 2022. This significant growth was attributed to both increased demand and a shift in consumer behavior away from savings card programs. However, Lilly also reported experiencing intermittent delays fulfilling orders due to high demand.

Zepbound, a newcomer launched in November 2023 for adults with obesity or overweight and weight-related comorbidities, generated $175.8 million in revenue during its first quarter. This positive initial performance indicates its potential to contribute further to Lilly's growth trajectory. 

Verzenio is an Eli Lilly breast cancer drug used for hormone receptor-positive, HER2-negative advanced or metastatic breast cancer. Jardiance," developed by Boehringer Ingelheim and Eli Lilly, is a type 2 diabetes medication belonging to the SGLT2 inhibitor class, aiding in blood sugar control and reducing the risk of cardiovascular events in diabetic patients.

Overall, Q4 2023 revenue for the company increased by 28% to $9.35 billion, driven by a 16% increase in realized prices, an 11% increase in volume, and a favourable impact from foreign exchange rates. "2023 was a year of tremendous achievement for Lilly, which delivered life-changing medicines to more patients than ever before resulting in strong revenue growth," said David A. Ricks, Lilly's chair and CEO.

"We advanced our pipeline of new medicines for serious diseases and created new partnerships and innovative ways of collaborating to add to that pipeline. Lilly invested in the quality, reliability and resilience of our supply chain with new advanced manufacturing plants and lines in the U.S. and in Europe.

Looking ahead, Lilly's 2024 revenue forecast anticipates a range of $40.4 billion to $41.6 billion, reflecting continued confidence in the anti-obesity market's potential. “Entering 2024, we remain focused on the opportunity in front of us, to help solve some of the most challenging healthcare problems in the world and make life better for millions of patients,” said Ricks.

Positive results from ongoing clinical trials like SYNERGY-NASH, which studies the efficacy of tirzepatide (the active ingredient in Zepbound) for non-alcoholic steatohepatitis (NASH), further bolster this optimism, the company said. Eli Lilly and Company also announced further expansion of its injectable manufacturing capacity with a planned investment of $2.5 billion to build a site in Germany, reflecting the company's aim to expand its manufacturing capabilities to meet growing demand for its products. Both the drugs await approval as weight loss drugs from Drugs Controller General of India (DCGI).