In this article LLY Follow your favorite stocks CREATE FREE ACCOUNT An Eli Lilly & Co. Zepbound injection pen arranged in the Brooklyn borough of New York, US, on Thursday, March 28, 2024. Shelby Knowles | Bloomberg | Getty Images Eli Lilly' s blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro posted weaker-than-expected sales for the third quarter, even as supply of both medicines have largely recovered from widespread shortages in the U.
S. The reason, according to the company, is not an issue of demand or supply. Eli Lilly instead blamed disappointing sales on drug wholesalers cutting inventory of Zepbound and Mounjaro.
Wholesalers purchase medicines from manufacturers and sell them to hospitals, clinics, pharmacies and other health-care providers. Supply increases allowed Eli Lilly to fulfill back orders for wholesalers in the second quarter, which led to increased inventory of Zepbound and Mounjaro during the period, according to pharmaceutical giant. But those wholesalers tapped into some of that existing stock in the third quarter instead of buying more from the company, which dampened revenue from both treatments, Eli Lilly said.
Mounjaro's third-quarter sales of $3.11 billion fell well short of the $3.7 billion analysts had expected, according to estimates compiled by StreetAccount.
Sales of Zepbound were $1.26 billion in the quarter, missing the $1.76 billion expected by analysts.
"The primary culprit was an inventory hit to Mounjaro and Zepbound ..