Lilly(US:LLY) ZACKS·2024-10-17 20:01Core Viewpoint - Eli Lilly and Company (LLY) has experienced a decline in stock value due to recent FDA decisions regarding its GLP-1 drug tirzepatide, despite the company's strong performance and growth prospects in the pharmaceutical market [1][2][3]. Group 1: Stock Performance and Market Impact - LLY's stock has declined 1.7% this week, resulting in a loss of nearly $14 billion in market value [1]. - The FDA's recent decision to review the removal of tirzepatide from its shortage list has negatively impacted LLY's shares [2][3]. - Despite this setback, LLY's stock has risen 57.3% this year, outperforming the Large Cap Pharmaceutical industry and the S&P 500 [8]. Group 2: Product Portfolio and Pipeline - Tirzepatide, marketed as Mounjaro and Zepbound, has become a key revenue driver, generating approximately $6.7 billion in sales in the first half of 2024, accounting for around 44% of total revenues [4]. - LLY has invested over $18 billion since 2020 to enhance manufacturing capabilities, which is now benefiting the supply of its drugs [4]. - The company has received approvals for several new drugs, including Kisunla for Alzheimer's disease, which is expected to generate significant sales [6][7]. Group 3: Competitive Landscape - LLY's tirzepatide faces competition from Novo Nordisk's semaglutide, which is also in high demand but remains in short supply [5]. - The company is developing tirzepatide for additional indications, which could further enhance its market position [5]. Group 4: Financial Outlook - Earnings estimates for LLY have decreased from $16.49 to $14.41 per share for 2024, attributed to acquisition-related costs, while estimates for 2025 have increased from $22.79 to $24.16 per share [9][10]. - LLY's strong revenue growth is driven by the demand for its key products, which is expected to offset declines from other drugs [11][12].