The demand for weight-loss drugs remains strong! Eli Lilly's financial report completely exceeds expectations, with the stock price soaring more than 8% in pre-market trading.

US pharmaceutical company LLY announced on Wednesday that its fourth quarter revenue, profits, and 2026 performance guidance all greatly exceeded market expectations in its financial report, primarily due to the sharp increase in demand for its flagship weight loss drug Zepbound and diabetes treatment drug Mounjaro. Boosted by this, the company's stock price surged over 8% in pre-market trading. Currently, the GLP-1 drug market is experiencing explosive growth, and despite facing competition from telemedicine companies selling cheap generic drugs and price reduction agreements reached with the US government, LLY is still seizing growth opportunities by leveraging the increasing demand for weight loss drugs in the market. Furthermore, LLY's competitor Novo Nordisk A/S Sponsored ADR Class B's new oral weight loss drug Wegovy has recently seen a significant increase in sales in the US market. In this context, LLY is taking multiple measures to consolidate its leading position in this race, and its self-developed oral weight loss drug Orforglipron is expected to be approved for market later this year. The financial report showed that LLY's fourth quarter revenue was $19.29 billion, a 43% increase from the same period last year, well above analysts' expectations of $17.96 billion. In the US market, revenue reached $12.9 billion, with LLY attributing this to a 50% increase in sales (prescription volume or sales volume) of its products (especially Mounjaro and Zepbound), partially offsetting the actual price decreases of these drugs. It is understood that in November last year, LLY and Novo Nordisk A/S Sponsored ADR Class B both reached a milestone agreement with US President Trump, announcing a reduction in the prices of their core weight loss and diabetes drugs. According to the agreement, starting in 2026, LLY and Novo Nordisk A/S Sponsored ADR Class B will reduce the prices of related drugs for beneficiaries of US federal insurance (Medicare) and Medicaid, and will also provide discount drugs directly to ordinary consumers through the TrumpRx direct-to-consumer drug purchasing platform (which has not yet been launched), created by the Trump administration. As a result, the two pharmaceutical companies will receive a three-year tariff exemption incentive. LLY's CEO Dave Ricks admitted in an interview last Friday that with the drug pricing agreement, the prices of the company's core drugs will undergo a reduction earlier this year, but he also stated that sales growth of their drugs will accelerate in the latter half of this year. In the fourth quarter, Zepbound sales reached $4.3 billion, higher than the expected $3.8 billion; Mounjaro sales reached $7.4 billion, also higher than the expected $6.7 billion. Mounjaro is becoming increasingly popular in markets outside the US, reaching $3.3 billion in overseas revenue. In terms of profits, LLY achieved a net profit of $6.64 billion in the fourth quarter, or $7.39 per share; while in the same period last year, the company's net profit was $4.41 billion, or $4.88 per share. Excluding one-time items related to intangible asset valuations and other adjustments, LLY's adjusted earnings per share in the fourth quarter were $7.54, higher than the market expectation of $6.67. Looking ahead, the pharmaceutical giant expects its full-year revenue in 2026 to be between $80 billion and $83 billion, compared to analysts' expectations of $77.62 billion. On the profit side, LLY expects adjusted earnings per share to be between $33.50 and $35 in 2026, while analysts generally expect $33.23 per share.