Eli Lilly's Supply Constraints and Market Impact
Eli Lilly (LLY) experienced significant stock growth, rising about 56% over the past year. This followed a period where the company deliberately limited supply of its medicines to manage demand globally. In early February 2025, Eli Lilly’s CEO stated that production capacity was insufficient and launches were being controlled worldwide. Despite these constraints, revenue from rationed products remained strong with an operating margin of 42.1% in fiscal Q2 2025 compared to a three-year average of 32.7%. The company specifically mentioned throttling commercial activity in Brazil, China, India, and Mexico before experiencing significant growth in these regions by the second quarter of 2026. In August 2026, Eli Lilly reported revenue rising 48% to $23 billion driven primarily by Mounjaro and Zepbound. The U.S. price fell slightly due to changes in rebates and discounts. Other pharmaceutical companies like Merck (MRK) also saw strong returns during the same period.
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Topics: Eli Lilly GLP-1 drugs international expansion Mounjaro supply constraints