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Eli Lilly Reports Record Q1 Revenue but Faces Profit Pressure and Competitive Challenges

The pharmaceutical giant's diabetes and obesity drugs fueled a 45% revenue surge, but profit guidance was cut due to acquisition costs and CVS's formulary change.

Overview

  • Eli Lilly posted Q1 2025 revenue of $12.73 billion, a 45% year-over-year increase, driven by strong sales of Mounjaro and Zepbound.
  • Adjusted earnings per share reached $3.34, surpassing Wall Street estimates of $3.02.
  • Full-year profit guidance was reduced to $20.78–$22.28 per share, reflecting a $1.57 billion charge from the Scorpion Therapeutics acquisition.
  • CVS Health announced it will drop reimbursement for Zepbound starting July 1, opting instead for Novo Nordisk's Wegovy, intensifying competition in the weight-loss drug market.
  • Despite challenges, Eli Lilly reaffirmed its 2025 sales guidance of $58–$61 billion, maintaining confidence in its market leadership.