Eli Lilly and Co (NYSE:LLY) shares fell over 12% on Wednesday after the drug maker slashed guidance for the year following underwhelming figures for the third quarter.
Sales of Eli’s blockbuster weight loss drug Zepbound fell short of analysts’ expectations, at $1.26 billion compared to estimates for $1.76 billion.
This weighed on overall revenue, which climbed by 20% to $11.44 billion, but fell short of expectations for $12.11 billion.
Adjusted earnings per share increased from $0.10 to $1.18, with this again undershooting estimates for $1.47.
Eli noted Zepbound sales were hit by wholesale inventory scale backs, which held back revenue from its diabetes treatment Mounjaro too.
A $2.83 billion charge was also recognised during the quarter, primarily related to Eli’s take over of bowel disease drug firm Morphic.
Earnings guidance for the year was cut as a result, Eli said, to a range of $13.02 to $13.52 per share from between $16.10 and $16.60 previously.
Revenue expectations were also reduced to between $45.4 billion and $46 billion from as high as $46.6 billion beforehand.
“In [the third quarter], the company continued to be prudent in scaling up demand generation activities,” Eli added, highlighting efforts to balance weight loss drug supply.
Shares fell 12.7% on Wednesday.