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Indianapolis-based Eli Lilly and Co. on Thursday posted 45% revenue growth in the first quarter of 2025 that topped Wall Street expectations, but stock prices tumbled more than 10% by midday after the drugmaker’s earnings per share did not meet analysts’ estimate.
For the quarter, Lilly reported profit of $2.76 billion, up 23% from the same period a year ago. Revenue was $12.73 billion, up 45% from a year ago.
Lilly earned $3.34 per share in the first quarter in non-GAAP results excluding one-time costs, a 29% gain from a year ago. But analysts were expecting $3.46, according to Seeking Alpha.
In a written statement released early Thursday, CEO David Ricks noted the company is accelerating manufacturing investments to support demand for its newest medicines. The company said earlier this year said it planned to build four new manufacturing facilities at yet-to-be-named locations in the United States.
Lilly also reaffirmed its 2025 revenue guidance to be between $58 billion and $61 billion, noting that the calculation was based on existing tariff and trade policies as of Thursday.
“We support the U.S. government’s goals to increase domestic investment. However, we don’t believe tariffs are the right mechanism,” Ricks said during a Thursday morning call with investors.
He added that “the expansion of tariffs and other geographies, or increases in retaliatory tariffs would have a negative effect on Lilly and for our industry.”
During the call, Lilly also highlighted positive clinic trial news from its pipeline for a GLP-1 drug taken orally rather than by injection.
Orforglipron is the first small molecule GLP-1 to successfully complete a Phase 3 trial, lowering A1C by an average of 1.3% to 1.6% across doses for adults with type 2 diabetes. What’s more, the investigational once-daily oral pill reduced weight by an average 16 pounds, 7.9%, at the highest dose.
The company’s revenue results were driven by robust growth by diabetes treatment Mounjaro and weight-loss medication Zepbound. Global Mounjaro revenue was $3.84 billion, a 113% increase over the same period a year ago. Zepbound, a newer medication, hit $2.31 billion, compared with $517 million a year ago.
Lilly rival Novo Nordisk also announced Thursday that CVS Caremark, the country’s largest Pharmacy Benefit Manager, or PBM, decided that Wegovy injection 2.4 mg would soon be the preferred GLP-1 medicine on its largest commercial template formularies. The change is effective July 1.
Shares of Lilly were down nearly $100 as of 12:40 p.m. Thursday, at around $804.
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Novo Nordisk is now officially Lilly’s arch enemy! And lly, why decrease yearly guidance after just one quarter?! Stupid move. Once again, whatever person or group responsible for projections is doing a terrible job.