(Reuters) -Eli Lilly raised its full-year profit forecast on Thursday, betting on surging demand for its blockbuster weight-loss drug, Zepbound, as it targets new markets and looks to grab more share from Novo Nordisk’s Wegovy.
However, shares of the U.S. drugmaker fell about 12% in premarket trading after it reported data from its oral weight loss drug, orforglipron, earlier in the day.
Orforglipron helped patients lose 12.4% of their weight on average after 72 weeks. At least three analysts said the market had been looking for orforglipron to match Wegovy’s 14.9% weight loss over 68 weeks, as shown in a 2021 trial, with some expecting the pill to surpass Novo’s popular drug.
Lilly competes with Danish drugmaker Novo Nordisk in the fast-growing market for weight-loss drugs known as GLP-1 agonists, which is expected to top $150 billion in revenue over the next decade.
Last week, Novo cut its profit forecast for the second time this year, citing lower-than-expected U.S. growth and competition from cheaper copies of Wegovy made by compounding pharmacies.
The company now expects to earn $21.75 to $23 per share on an adjusted basis this year, compared with its previous forecast for a profit of $20.78 to $22.28 per share.
Analysts were expecting a profit of $21.74 per share for 2025, according to data compiled by LSEG.
(Reporting by Bhanvi Satija in Bengaluru and Patrick Wingrove in New York; Editing by Anil D’Silva)
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