Lilly(Eli) & Co

Strong Revenue Growth: Eli Lilly's Q1 2025 revenue increased by 45% year-over-year (YOY), reaching $7.5 billion, driven primarily by strong sales from key products like Mounjaro, Zepbound, and Omvoh. The company expects continued revenue growth, with guidance reaffirmed for 2025.

Pipeline Developments: The Phase 3 clinical data for orforglipron, an oral GLP-1 medication for Type 2 diabetes, showed promising results with significant hemoglobin A1c reductions and weight loss. Additional Phase 3 trial results across various indications are anticipated within the next 12 months, with regulatory submissions for obesity expected by late 2025.

Challenges with Formulary Access: The CVS formulary announcement favoring Wegovy over Zepbound raises concerns about PBM dynamics, likely leading to market share shifts and intensifying pricing competition. Investors should be aware of the potential for one-on-one formulary restrictions affecting Zepbound's access.