Investing.com — Shares of Eli Lily fell sharply on Tuesday after the drugmaker reported weaker-than-expected fourth-quarter revenue, although Bank of America analysts said this represented a buying opportunity.
Shares of Eli Lilly and Company (NYSE:) fell 6.6% to $744.91 after it said it expects fourth-quarter revenue to reach $13.5 billion, below the Street's forecast of $14.08 billion. This failure was largely driven by lower-than-expected sales of the Mounjaro and Zepbound properties, which were somewhat expected by investors.
Bank of America said the stock's losses presented a “particularly good buying opportunity,” noting that LLY remains one of two large companies that should continue to dominate a large market for weight-loss drugs.
LLY expects 2025 sales to range between $58 billion and $61 billion, a slightly higher average than market estimates of $58.52 billion.
BofA kept LLY at buy and a price target of $997.0, but said it was reviewing its estimates for the stock.
Bank of America noted that the revenue loss in the fourth quarter “is still missing.” The brokerage also cited recent questions about weaker demand than initially expected, especially given that LLY has increased supply of its Mounjaro and Zepbound drugs in recent quarters.
While optimism about the weight-loss drugs led to solid gains in LLY through early 2024, Monday's sales also came in below expectations in the October quarter, keeping LLY shares in a limited range since then.
However, LLY is seeking to expand its customer base for its leading weight loss drugs. The company plans to launch Mounjaro in China, India, Brazil and Mexico in 2025.
The company – along with Copenhagen-listed Novo Nordisk A/S (NYSE:) – are the only two major manufacturers of weight-loss drugs, a category that has risen in popularity over the past year, especially with the launch of Novo. nordisk ozimbic.
