Eli Lilly's Stock Tumbles as Mounjaro, Zepbound Sales Miss Expectations

Shares of Eli Lilly and Co. fell sharply on Tuesday

The sell-off came after the company reported disappointing sales of its two newest drugs, Mounjaro and Zepbound.

Mounjaro, a once-weekly injection for type 2 diabetes, was expected to be a blockbuster drug for Lilly. However, sales of the drug came in well below expectations in the fourth quarter.

Zepbound, a treatment for obesity, also missed sales expectations.

The disappointing sales results raised concerns

The disappointing sales results raised concerns about the commercial potential of both drugs.

Mounjaro is seen as a potential competitor to Novo Nordisk's Ozempic, which has been a huge commercial success.

However, Mounjaro's high price and the need for weekly injections could limit its uptake by patients.

Zepbound's sales were also disappointing

Zepbound's sales were also disappointing, despite the fact that it is the only FDA-approved treatment for obesity that does not require surgery or lifestyle changes.

Analysts had expected Zepbound to generate sales of around $100 million in the fourth quarter. However, the drug's sales came in at just $25 million.

Analysts are downgrading their ratings on Lilly's stock

As a result of the disappointing sales results, analysts are downgrading their ratings on Lilly's stock.

JPMorgan downgraded Lilly's stock from "overweight" to "neutral." Citigroup downgraded the stock from "buy" to "neutral." And Credit Suisse downgraded the stock from "outperform" to "neutral."

Lilly's stock price has fallen by more than 10% since the sales results were announced

Lilly's stock price has fallen by more than 10% since the sales results were announced.

The stock closed at $327.63 on Monday. On Tuesday, the stock opened at $294.11 and fell to a low of $290.05 before closing at $294.76.

The disappointing sales results are a setback for Lilly

The disappointing sales results are a setback for Lilly.

The company has been counting on Mounjaro and Zepbound to drive growth in the coming years.

However, the lackluster sales of both drugs raises concerns about the company's future prospects.