Eli Lilly has cut its Q4 sales forecast, prompting investors to explore ETFs that could benefit from the dip in stock prices.
Indianapolis: Eli Lilly and Company saw its stock drop by 6.6% after it announced a lower revenue forecast for the fourth quarter and fiscal 2024. The company pointed to disappointing sales for its weight-loss drug Zepbound and diabetes treatment Mounjaro as the main reasons.
For those looking to invest, this might be a good time to consider ETFs that have significant exposure to Eli Lilly. Some top picks include iShares U.S. Pharmaceuticals ETF, Roundhill GLP-1 & Weight Loss ETF, and Horizon Kinetics Medical ETF.
The new revenue forecast for Q4 is around $13.5 billion, which is about $400 million less than what they expected back in October. They’re still projecting a solid 45% growth compared to last year, with Mounjaro expected to bring in $3.5 billion and Zepbound $1.9 billion.
Looking ahead, Eli Lilly is optimistic about 2025. CEO David Ricks mentioned that they plan to ramp up production of their weight-loss drugs and expect to see sales continue to rise. They’re aiming for revenues between $58 billion and $61 billion in 2025, with new medicines and expanded markets contributing to that growth.
So, if you’re thinking about investing in ETFs, keep an eye on those that focus on pharmaceuticals and weight-loss treatments. They could be a smart move given the current market situation.
