INDIANAPOLIS, INDIANA – Eli Lilly’s weight-loss drug Zepbound has seen an explosion in demand, leading the company to increase its annual sales forecast by $2 billion. This surge has also prompted the pharmaceutical company to boost its manufacturing capacity, which in turn has raised its market value above $700 billion, surpassing that of major companies like Tesla and Walmart.
The significant increase in production for Zepbound and Lilly’s related diabetes drug Mounjaro is expected in the second half of the year. Both drugs, chemically known as tirzepatide, are facing shortages due to high demand. Lilly is working tirelessly to meet the growing demand, with Chief Financial Officer Anat Ashkenazi noting that the company’s sites are operating around the clock, even undergoing construction overnight.
Approval of Lilly’s multi-dose Kwikpen for Mounjaro in Europe has given the company added confidence in its ability to launch the drug there. Mounjaro, which is approved for both diabetes and weight loss in Europe, has contributed to the company’s soaring market value above $700 billion.
The pharmaceutical giant currently has six manufacturing sites dedicated to producing these medicines. Ground has been broken for a new $2.5 billion manufacturing site in Germany, and the Concord, North Carolina site is expected to begin producing Zepbound and Mounjaro by the end of the year. Lilly also recently announced the acquisition of a manufacturing facility in Wisconsin to produce injectable medicines, with production set to begin at the end of 2025.
Despite these efforts, Lilly acknowledges that demand for their treatments will likely outpace supply through this year and possibly into the next. The U.S. Food and Drug Administration has warned of shortages for Zepbound and Mounjaro through the second quarter of this year, underscoring the overwhelming demand for these medications.
Both Eli Lilly and Danish rival Novo Nordisk are racing to increase production capacity in the lucrative weight-loss market, with estimates suggesting it could reach $100 billion by the end of the decade. This competition underscores the growing demand for GLP-1 agonists, originally developed for diabetes but now showing promise in helping patients lose weight.
The company is bullish about the potential for Zepbound, expecting coverage for patients insured under the U.S. Medicare program once it is approved for obstructive sleep apnea. This positive outlook is reflected in Lilly’s raised revenue forecast for 2024, now expecting between $42.4 billion and $43.6 billion for the year. Additionally, the company has raised its annual profit forecast, sending its shares soaring with a 4.6% jump to $771.44.