Key Factors
Eli Lilly reported a Q1 2024 EPS rise of 66%, beating analyst expectations by 11 cents, however barely missed income expectations, coming in at $8.77 billion, falling wanting $8.94 billion consensus estimates.
Eli Lilly raised full-year 2024 EPS and full-year income steerage by $2 billion.
Eli Lilly broke floor on its new $2.5 billion manufacturing facility in Germany, and its Harmony, North Carolina facility expects to provide Wegovy shipments by yr’s finish.
5 shares we like higher than Eli Lilly and Firm
Eli Lilly and Co. NYSE: LLY reported robust Q1 2024 earnings, inflicting shares to soar in direction of all-time highs initially, however a sell-the-news response triggered within the following days. The medical sector biopharmaceutical big continues to realize from the GLP-1 drug weight reduction pattern that is taken the mainstream by storm.
The momentum for GLP-1 medication exhibits no signal of slowing down as demand continues to outstrip provide. Analysts have been pleasantly stunned when Lilly raised full-year 2024 high and backside line forecasts, assuaging provide issues. Eli Lilly competes within the GLP-1 phase towards Novo Nordisk A/S NYSE: NVO and Viking Therapeutics Inc. NASDAQ: VKTX.Get Eli Lilly and Firm alerts:Signal Up
Novo Nordisk Warns of Falling Costs for GLP-1 Medication
A serious motive that led to the sell-the-news response in Lilly inventory stems from the assertion by competitor Novo Nordisk that costs are dropping for its Wegovy medicine. Novo Nordisk acknowledged in a convention name that its Ozempic and Wegovy costs fell barely decrease in Q1 2024. This was attributed to greater volumes and growing competitors, which is able to result in additional value cuts this yr. That information brought on shares of Novo Nordisk and Eli Lilly to fall.
Taking Steps to Bolster Capability
LLYEli Lilly and Firm$766.74 +31.77 (+4.32%) (As of 05/6/2024 ET)52-Week Vary$419.80▼$800.78Dividend Yield0.68percentP/E Ratio112.92Price Goal$757.95
Demand for its Tirzepatide twin agonist GLP-1/GIP medication is so scorching scorching that they are laborious to maintain on the cabinets. Capability constraints are the one impediment. To spice up capability, Lilly simply broke floor on a brand new $2.5 billion manufacturing facility in Germany. It expects its North Carolina website to begin manufacturing at yr’s finish.
Increasing Indications
As if demand wasn’t robust sufficient, Lilly is attempting to increase the potential affected person base for its GLP-1 medication by increasing its indications for Zepbound. Mounjaro is just permitted for sort 2 diabetes. Zepbound is permitted for persistent weight administration. Since weight problems can result in many different illnesses, Zepbound might show to be helpful for extra indications. Zepbound is at the moment present process Section 2 scientific trials for non-alcoholic steatohepatitis (NASH) and Section 3 trials for obstructive sleep apnea. It is also being studied for slowing the progress of Parkinson’s Illness. New GLP-1 information is anticipated to be prepared in 2025.

Each day Rectangle
LLY fashioned a day by day rectangle sample. The higher trendline resistance fashioned at $794.67 on February 16, 2024. It was rejected 5 instances. The latest was the breakout try after reporting its Q1 2024 earnings. The decrease trendline assist sits on the 0.618 Fibonacci (fib) retracement stage at $727.70, which has held towards 3 breakdown makes an attempt. The day by day relative energy index (RSI) has slipped below the 50-band. Pullback assist ranges are at $727.70, $707.84, $682.50 and $650.60.
Strong Q1 2024 Outcomes
Lilly reported Q1 2024 EPS of $2.58, beating consensus analyst estimates by 11 cents. Revenues rose 26% YoY to $8.77 billion, falling wanting $8.94 billion consensus estimates.
High Drug Sellers
Revenues have been pushed by Mounjaro, Zepbound, Jardiance (cardiovascular and kidney illness) and Verzenio (breast most cancers) remedies. Trulicity gross sales fell 26.3% YoY to $1.456 billion. Verzenio revenues rose 39.9% YoY to $1.05 billion. Mounjaro gross sales rose 217.8% YoY to $1.806 billion. Jardiance gross sales rose $18.9% YoY to $686.5 million.
Upside Steerage

Manufacturing Capability Growth Stays High Precedence
Eli Lilly CEO David Ricks acknowledged its high precedence is to execute its manufacturing enlargement plans. The corporate will purchase a state-of-the-art facility from Nexus Prescribed drugs in Prairie, Wisconsin. It has been FDA-approved, and preliminary manufacturing will begin by the tip of 2025. The $2.5 billion parenteral manufacturing facility in Germany broke floor lately. The corporate is working to maximise manufacturing and productiveness in all its current amenities.
The EMA approval for its upcoming multi-dose KwikPen for Mounjaro supply is anticipated to unlock new provide capability in Europe and worldwide markets. Ricks commented, “We proceed to make progress towards our plans to extend manufacturing capability, essentially the most bold enlargement plan in our firm’s historical past.”
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