LONDON (ShareCast) - (Sharecast News) - Shares in Eli Lilly & Co fell sharply on Wednesday, after the US drugs firm missed quarterly forecasts and cut its full-year outlook.
The firm, which makes blockbuster weight-loss drug Zepbound, said third-quarter revenues rose 20% to $11.4bn.

That was driven by a 15% increase in volume and 6% uplift in prices, partially offset by a 1% decrease because of foreign exchange rates.

However, revenues were lower than analyst expectations for $12.1bn. Sales of Zepbound also disappointed, coming in around $400m below Wall Street forecasts at $1.2bn.

Earnings per share of $1.18 also missed consensus for $1.47.

As at noon GMT, shares in Eli Lilly had tumbled 11% in pre-market trading.

The firm said that sales of Zepbound and Mounjaro - another diabetes and weight loss treatment - had been negatively impacted by inventory decreases in the wholesaler channel during the quarter.

The full-year revenue guidance range was trimmed from between $45.4bn and $46.6bn to between $45.4bn and $46.0bn. The outlook for reported EPS was also cut, from between $15.10 and $15.60 to between $12.05 and $12.55.

David Ricks, chief executive, said: "Lilly had another strong growth quarter in the third quarter. While the growth of Mounjaro and Zepbound is impressive, we are equally proud of the 17% growth in the non-incretin revenue which includes our oncology, immunology and neuroscience portfolios."

With the popularity of weight loss drugs surging, suppliers such as Eli Lilly are struggling to increase manufacturing capacity to match demand.

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