Eli Lilly Leads Q1 2025 Pharma Earnings as U.S. Rivals Report Declines

Eli Lilly reported a 45% year-over-year increase in revenue in the first quarter of 2025 making it a notable performer in the pharmaceutical sector. The main factor driving this growth was the effectiveness of its diabetes and weight-loss drugs, Zepbound and Mounjaro. On the other hand, during the same time period, seven significant pharmaceutical companies with headquarters in the United States, including Pfizer, Merck, and Bristol Myers Squibb, reported lower sales than the previous year.

Eli Lilly's total revenue for Q1 2025 reached $12.73 billion, up from $8.77 billion in Q1 2024. The company's diabetes drug Mounjaro generated $3.84 billion in revenue, marking a 113% increase from the previous year. Zepbound, another key product, reported $2.31 billion in sales, a significant rise from $517 million in Q1 2024. These figures underscore the growing demand for GLP-1 receptor agonists in managing diabetes and obesity.

While Eli Lilly experienced substantial growth, several other U.S. pharmaceutical companies faced revenue challenges in Q1 2025:

• Viatris: Reported an 11% year-over-year revenue decline, the largest among its peers.

• Pfizer: Experienced an 8% decrease in revenue, primarily due to a significant drop in sales of its COVID-19 antiviral, Paxlovid, which fell from $2 billion in Q1 2024 to $491 million in Q1 2025.

• Organon: Saw a 7% decline in revenue.

• Bristol Myers Squibb (BMS): Reported a 6% decrease, with a notable decline in sales of its blood thinner, Eliquis.

• Regeneron: Faced a 4% drop in revenue.

• Merck: Experienced a 2% decline.

• Gilead Sciences: Had a marginal 0.3% decrease in revenue.

These declines are attributed to various factors, including reduced demand for COVID-19 treatments and competitive pressures in key therapeutic areas.

The pharmaceutical industry in the U.S. is navigating a complex landscape marked by political and market uncertainties. Tariff threats and proposed drug price reductions under the Trump administration have created an environment of caution among investors and companies alike. Additionally, the potential appointment of Robert F. Kennedy Jr. as head of the Department of Health and Human Services has introduced further unpredictability, given his critical stance on the pharmaceutical industry.

Eli Lilly's strong performance in Q1 2025 highlights the company's successful strategy in capitalizing on the growing demand for innovative diabetes and weight-loss treatments. However, the broader U.S. pharmaceutical sector faces challenges that may impact future earnings, including political pressures, market saturation in certain drug categories, and the ongoing need for innovation to meet evolving healthcare demands.

Reference:

1. Dunleavy, Kevin. “7 Top Pharmas Posted Revenue Declines in Q1. The Common Thread? All Are US Firms.” Fierce Pharma, May 27, 2025. https://www.fiercepharma.com/pharma/except-juggernaut-eli-lilly-several-us-drugmakers-saw-revenue-declines-q1.

(Input from various sources)

(Rehash/Sakshi Thakar/MSM)