Eli Lilly (NYSE: LLY) reported its financial results for Q2 2025, demonstrating a 38% revenue growth; however, the market reacted negatively to the trial results of a new drug.
Financial Performance Highlights
Eli Lilly reported a revenue of $15.56 billion, marking a 38% increase year-over-year. This growth was driven by strong sales of diabetes and obesity treatments, Zepbound and Mounjaro. Earnings per share jumped to $6.29, reflecting a 92% increase that surpassed analysts' expectations.
Disappointment in Drug Trial Results
The trial results for orforglipron, a new weight-loss drug, fell short of investors' expectations. Participants achieved an average weight loss of 12.4%, which was considered insufficient compared to existing injectable therapies. Although the trial data was statistically significant, it did not meet the ambitious forecasts set by analysts.
Sharp Decline in Company Stock
Following the announcement of the trial results, Eli Lilly's stock plummeted by 14.53%, from $746.37 to $637.91. This dramatic selloff highlighted how even strong financial results could be overshadowed by negative news about drugs. The company’s market capitalization fell by approximately $98 billion in a single trading session.
Despite strong financial metrics, Eli Lilly faced a significant market response due to disappointing results from its new drug. This emphasizes investors' sensitivity to clinical trials and their outcomes.
