Eli Lilly Shares Plunge After Disappointing Q3 Earnings and Sales

The pharmaceutical giant missed Wall Street expectations due to inventory adjustments and higher manufacturing costs, leading to a significant stock drop.

Eli Lilly's third-quarter revenue was $11.44 billion, falling short of the expected $12.2 billion, with sales of its weight-loss drug Zepbound and diabetes treatment Mounjaro missing targets.
The company's stock experienced its worst drop since 2000, losing over 10% in value and wiping out approximately $110 billion in market capitalization.
Eli Lilly cited reduced purchases by wholesalers, who were using up existing inventory levels, as a key factor in the revenue shortfall for Zepbound and Mounjaro.
Despite strong demand, the company has yet to begin major promotional efforts for Zepbound, which are planned to start in November.
Eli Lilly has adjusted its full-year earnings forecast downward, now expecting between $13.02 and $13.52 per share, compared to previous guidance of up to $16.60 per share.