Eventually, the luckiest corporations get to cope with a really specific downside: what to do when their inventory could possibly be getting forward of itself.
It’s an issue Eli Lilly received a little bit style of Tuesday when it introduced its full-year earnings. The drugmaker’s inventory has greater than doubled over the previous 12 months because of the ever-increasing hopes for its GLP-1-based diabetes and weight reduction drug, offered below the model names Mounjaro and Zepbound. It was a giant deal when Lilly turned the primary drug firm ever to have a market worth of $500 billion; it’s now sitting at a shocking $670 billion.
At first, the earnings report recommended the corporate had blasted by way of expectations once more, saying fourth-quarter 2023 gross sales of $9.35 billion, virtually half a billion {dollars} above analysts’ expectations, and likewise saying new information for Mounjaro in treating metabolic dysfunction-associated steatohepatitis (MASH), a type of liver illness beforehand known as NASH. Initially, shares traded up 5%.