Eli Lilly stock fell on Tuesday after its latest financial guidance disappointed investors. Jim Cramer says this drop is a buying opportunity. The pharmaceutical giant lowered its 2024 revenue outlook after lower-than-expected fourth-quarter results for the pivotal GLP-1 drug used for weight loss and diabetes. Eli Lilly said fourth-quarter sales should be about $13.5 billion, below Wall Street's expectations of $13.9 billion, according to FactSet. This is approximately $400 million below the guidance management floor issued during the October quarter. As a result, the stock price fell more than 7% on Tuesday. Jim said members should take advantage of this downturn to buy shares in quality companies at better prices. “2024 is already in the history books,” Jim said. “It has nothing to do with stocks…I think you have to ride the horse called Eli Lilly.” The shortage is due to popular weight loss drug Zepbound and type 2 diabetes drug Munjaro, adding to the disappointment. It's increasing. Lilly said fourth-quarter sales for Zepbound and Munjaro are expected to be $1.9 billion and $3.5 billion, respectively, below expectations of $2.1 billion and $4.4 billion, according to FactSet. Previous guidance had assumed faster growth than achieved in the three months to December 31st. Zepbound and Mounjaro share an active ingredient called tirzepatide and are part of the fast-growing family of GLP-1 drugs. This drug mimics the naturally occurring GLP-1 hormone to regulate blood sugar levels, suppress appetite, and lead to weight loss. Eli Lilly and Danish rival Novo Nordisk currently dominate the GLP-1 space, producing Wegovy for weight loss and Ozempic for diabetes. Some on Wall Street believe the GLP-1 market could be worth at least $100 billion a year by the end of 2020. Jim has long said that tirzepatide could become the best-selling drug of all time. “Let the ignorant people sell” Eli Lilly stock, Jim said on Tuesday's news. “Look at the size of the market…We're still in the early stages, and that early stage is already much larger than any drug I've ever seen.” LLY YTD Mountain Eli Lilly (LLY) at the beginning of the year Performance to date We most recently added positions in Eli Lilly in late November. This comes a few weeks after upgrading the stock to a Buy equivalent rating on the back of a softer share price. Third quarter profit forecast. In September, we broke discipline and sold Eli Lilly for a small amount, posting a nearly 300% profit on the transaction. The club is currently restricted from trading Eli Lilly stock because Jim mentioned it on CNBC within the past 72 hours. But there's nothing in Tuesday's update to suggest that the long-term growth opportunity for GLP-1 drugs has diminished, making it worth buying more shares for members. In fact, Eli Lilly said Tuesday that it expects fiscal 2025 sales to be in the range of $58 billion to $61 billion. The midpoint of $59.5 billion was higher than analysts' expectations of $58.4 billion. The company plans to release its full 2025 guidance on February 6, along with its full fourth quarter results. Eli Lilly's update on Tuesday coincided with the influential JPMorgan Healthcare Conference in San Francisco. It's common for companies to adjust guidance or announce deals during events. After closing on Tuesday, Lilly CEO David Rix will participate in the conference's “fireside chat.” In an interview on CNBC Tuesday morning, Ricks told Jim that “the underlying fundamentals are incredible” in the GLP-1 market. He further said, “The overall GLP-1 market grew 45% last year. We grew 60% and expanded our share in the fourth quarter.” Eli Lilly offered another reason to be optimistic about the company's long-term health earlier this week. CEO Rix told Bloomberg on Monday that he expects weight loss drug orforglipron to be approved in early 2026. Zepbound and Maunjaro are once-weekly injections. Investors see a lot of potential in obesity drugs because they are more convenient for both patients taking the drugs and manufacturers. Bottlenecks involving the auto-injector pens used to administer Zepbound and Mounjaro in the United States played a major role in supply shortages of these drugs. Eli Lilly is investing billions of dollars to address these shortages, and the company announced Tuesday that all doses of Zepbound and Mounjaro were available in the fourth quarter. Analysts at Leerink Partners reiterated their Buy rating on Eli Lilly's stock in a note to clients on Tuesday, with the stock expected to be supported by the possibility of accelerated Orforglipron trial results later this year. He said it was supposed to be. (Jim Cramer's Charitable Trust is Long LLY. See here for a complete list of stocks.) As a subscriber to Jim Cramer's CNBC Investment Club, you will receive trade alerts before Jim makes a trade. I will receive it. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust's portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. 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