Eli Lilly Cuts Q4 Sales Forecast: ETFs to Buy on the Dip

Eli Lilly and Company LLY dropped 6.6% in the Jan. 14 trading session after slashing its revenue guidance for the fourth quarter and fiscal 2024, citing lower-than-expected sales for its weight-loss medicine Zepbound and diabetes treatment Mounjaro. However, the drugmaker offered solid guidance for 2025, underscoring the strong growth prospects.Investors seeking to buy the dip could bet on ETFs having the largest exposure to the drugmaker. These include iShares U.S. Pharmaceuticals ETF IHE, Roundhill GLP-1 & Weight Loss ETF OZEM, Horizon Kinetics Medical ETF MEDX, Amplify Weight Loss Drug & Treatment ETF THNR and VanEck Vectors Pharmaceutical ETF PPH.The pharmaceutical giant expects revenues to be about $13.5 billion in the fourth quarter, approximately $400 million below the guidance range it issued at the end of October. The new guidance includes revenues of about $3.5 billion for Mounjaro and $1.9 billion for Zepbound and represents 45% growth from the year-ago quarter. Eli Lilly also cut its revenue guidance for full-year 2024 to $45 billion from the previous expectation of $45.4-$46 billion. The new outlook still indicates 32% year-over-year growth in revenues. The drugmaker expects to report full quarterly results on Feb. 6 (see: all the Healthcare ETFs here). The company offered a bullish outlook for 2025. Heading into fiscal 2025, CEO David Ricks said Eli Lilly expects sales of weight-loss drugs to continue growing. He noted that the company will add more manufacturing capacity and expects to produce at least 60% more sellable doses of its incretin drugs in the first half of the year compared with the same period in 2024.The drugmaker anticipates revenues between $58 billion and $61 billion in fiscal 2025. The current Zacks Consensus Estimate is pegged at $60.26 billion. Major contributors to 2025 revenues will be new LLY medicines such as Jaypirca, Ebglyss, Omvoh and Kisunla, approvals of new indications for existing Lilly medicines, launches of Mounjaro in additional worldwide markets, as well as potential launches of new medicines - imlunestrant for metastatic breast cancer.ETFs in FocusiShares U.S. Pharmaceuticals ETF (IHE)iShares U.S. Pharmaceuticals ETF offers exposure to 42 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Eli Lilly takes the top spot, accounting for a 23.5% share. iShares U.S. Pharmaceuticals ETF has $603.5 million in AUM and charges 39 bps in fees and expenses. Volume is lower as it exchanges about 64,000 shares a day. The fund has a Zacks ETF Rank #2 (Buy) with a High risk outlook.Roundhill GLP-1 & Weight Loss ETF (OZEM)Roundhill GLP-1 & Weight Loss ETF is the world’s first GLP-1 ETF and is actively managed. Roundhill believes that weight loss drugs, including GLP-1 agonists, represent one of the most revolutionary advancements in the global pharmaceutical industry. OZEM holds 28 stocks in its basket, with LLY occupying the top position at 16.1% share. Roundhill GLP-1 & Weight Loss ETF has accumulated $39.5 million in its asset base and charges 59 bps in annual fees. It trades in an average daily volume of 29,00 shares.Horizon Kinetics Medical ETF (MEDX)Horizon Kinetics Medical ETF is an actively managed ETF that invests primarily in patented first-line pharmaceuticals and biologics, as these products tend to have high-profit margins and significant barriers to entry. It holds 37 stocks in its basket, with Eli Lilly taking the top spot at 16.3% of the portfolio. Horizon Kinetics Medical ETF has gathered $15.6 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 2000 shares.Amplify Weight Loss Drug & Treatment ETF (THNR)Amplify Weight Loss Drug & Treatment ETF provides access to global companies involved in the pharmaceutical manufacturing of GLP-1 agonist or enablers of such businesses. It tracks the VettaFi Weight Loss Drug & Treatment Index and holds 28 stocks in its basket. Eli Lilly takes the top spot, accounting for a 15.6% share. Amplify Weight Loss Drug & Treatment ETF charges 59 bps in annual fees and has AUM of $4.1 million. It trades in an average daily volume of 2,000 shares (read: Inside the Booming Obesity Drug Market: Weight Loss ETFs to Win). VanEck Vectors Pharmaceutical ETF (PPH)VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Eli Lilly occupying the top position at 13.8% of the assets. VanEck Vectors Pharmaceutical ETF has amassed $543.3 million in its asset base and trades in a good volume of about 205,000 shares a day. It charges 36 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports VanEck Pharmaceutical ETF (PPH): ETF Research Reports Amplify Weight Loss Drug & Treatment ETF (THNR): ETF Research Reports Roundhill GLP-1 & Weight Loss ETF (OZEM): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks