Eli Lilly reported better-than-expected first-quarter results, driven by strong sales of its GLP-1 medications. However, a partnership between CVS Health and Novo Nordisk has overshadowed these positive results, causing Eli Lilly’s shares to drop by more than 10%. Revenue for the quarter increased by 45% year-over-year to $12.7 billion, surpassing Wall Street expectations. The combined sales of Mounjaro and Zepbound reached $6.15 billion, slightly above estimates. Despite this success, concerns arise from CVS Health’s decision to prioritize Novo Nordisk’s Wegovy over Zepbound starting July 1. This move raises fears about market share loss and pricing pressures. CEO David Ricks emphasized Eli Lilly’s commitment to innovation, highlighting the potential of its oral GLP-1 medication, orforglipron, which has shown promising results in late-stage trials. The company reaffirmed its full-year sales outlook but adjusted its EPS guidance due to accounting charges unrelated to operational performance. — new from CNBC
