Despite reports from Eli Lilly (LLY.US; LLY.DE) that its weight loss pill orforglipron met all objectives in the Phase 3 ATTain-1 obesity trial and led to an average weight loss of 11.2% over 72 weeks, this result is considered insufficient by investors and analysts. The level of weight loss, while positive, does not significantly exceed the results already achieved by current competitors such as Novo Nordisk's Wegovy, and is only slightly stronger than earlier Phase 2 data, leading to market disappointment. Investors had expected a much clearer effect to justify a potential market advantage, especially given the high expectations for innovation in the obesity drug segment. As a result, although the study technically met its endpoints, the result is considered insufficient to give Eli Lilly a clear competitive advantage or drive further strong growth in this lucrative market. Eli Lilly's shares fell nearly 13% before the opening of today's session, translating into a very strong negative reaction from investors.
In addition, reimbursement restrictions (e.g., related to CVS Caremark) and signals of a possible weakening of demand in the short term are heightening uncertainty surrounding the obesity drug industry. The company's communication indicates that production and demand are not fully aligned – the company had to update its financial forecasts for 2025 and lower the upper range of its revenue and net profit expectations. We will hear more information when the company presents its quarterly results shortly.
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Create account Try a demo Download mobile app Download mobile appUpdate as of 1:00 PM CET (earnings release):
- Eli Lilly generated adjusted earnings per share (Adj EPS) of $6.31 in the second quarter of 2025, compared to $3.92 a year earlier.
- Revenue reached $15.56 billion, significantly exceeding analyst expectations of $14.1 billion.
- The Zepbound segment generated $3.38 billion in sales, also above the market consensus of $3.07 billion.
- The company raised its annual revenue forecast to $60–62 billion, compared to the previous range of $58–61 billion.
- The adjusted earnings per share forecast for this year was also raised to $21.75–23.00, compared to the previous range of $20.78–22.28.
The company's shares, listed in Germany, are currently falling to their lowest levels since January 2024. Source: xStation
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