Eli Lilly Stock Slips on Outlook. Is It Time to Buy the Dip?

Shares of Eli Lilly (NYSE: LLY) sank after the drugmaker lowered its full-year profit outlook, and a potential headwind to pricing and access to its drug Zepbound emerged. However, the guidance reduction stems from an up-front payment it made to acquire Scorpion Therapeutics' STX-478 program to treat breast cancer. This is a one-time financial adjustment related to accounting that has no bearing on its business operations.The company's GLP-1 drugs continue to drive strong revenue growth. Mounjaro revenue soared 113% to $3.8 billion, while Zepbound revenue surged from $517 million a year ago to $2.3 billion.Both drugs have the same active ingredient, tirzepatide, but are approved for different indications. Mounjaro is approved by the Food and Drug Administration (FDA) to help adults with type 2 diabetes lower their blood glucose levels, while Zepbound is approved for weight loss in obese adults or overweight adults with at least one weight-related condition, such as high cholesterol or high blood pressure. The reality, though, is that both drugs are often prescribed off-label for any type of weight loss.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool