Eli Lilly on Tuesday reported fourth-quarter revenue and adjusted earnings that topped expectations on the strong launch of its new weight loss drug, Zepbound, and higher prices for its blockbuster diabetes drug, Mounjaro.

Zepbound, which won approval from U.S. regulators in early November, raked in $175.8 million in sales for the fourth quarter.

The quarterly results are the first to include sales of Zepbound, which some analysts say could post more than a billion dollars in sales in its first year on the market and eventually, become the biggest drug of all time. 

Shares of Eli Lilly were up about 5% in premarket trading Tuesday.

Here’s what Eli Lilly reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

Earnings per share: $2.49 adjusted vs. $2.22 expectedRevenue: $9.35 billion vs. $8.93 billion expected

Eli Lilly posted net income of $2.19 billion, or $2.42 a share, for the fourth quarter. That compares with a profit of $1.94 billion, or $2.14 a share, a year earlier. 

Excluding one-time items associated with the value of intangible assets, among other adjustments, the company posted a per-share profit of $2.49 cents for the fourth quarter of 2023.

The pharmaceutical giant booked fourth-quarter revenue of $9.35 billion, up 28% from the same period a year ago.

Eli Lilly also issued its full-year forecast for 2024, which was generally in line with expectations.

The company expects full-year adjusted earnings of $12.20 to $12.70 per share. Eli Lilly also forecast 2024 revenue of $40.4 billion to $41.6 billion.

Analysts surveyed by LSEG expected full-year adjusted earnings of $12.43 per share and sales of $39.38 billion.

Shares of Eli Lilly jumped almost 60% last year as weight loss drugs skyrocketed in popularity despite hefty price tags, mixed insurance coverage and a handful of unpleasant side effects. With a market cap of roughly $673 billion, Eli Lilly is the largest pharmaceutical company based in the U.S. 

Higher prices for older drugs, particularly Mounjaro, helped drive up Eli Lilly’s revenue, the company said. Mounjaro booked $2.21 billion in sales for the fourth quarter, up from just $279.2 million in the same period a year ago. 

Analysts had expected the drug to bring in $1.73 billion in worldwide sales, according to estimates compiled by FactSet.

That increase reflects increased demand but also “higher realized prices” in the U.S. due to decreased use of Eli Lilly’s savings card programs as access to the drug continued to expand during the quarter, the company said. The savings card programs aim to help lower the out-of-pocket costs for drugs like Mounjaro for patients.

Revenue growth was also driven by sales of Eli Lilly’s breast cancer pill Verzenio, which rose 42% to $1.15 billion for the quarter due to increased demand and higher prices.

Those results came in under analysts’ expectations, however, which called for $1.18 billion in sales for the period. 

Sales of Jardiance, a tablet that lowers blood sugar in Type 2 diabetes patients, climbed 30% to $798.1 million for the fourth quarter. Analysts had expected $771.8 million in sales from Jardiance. 

Jardiance, which Eli Lilly shares with Boehringer Ingelheim, is among the first 10 drugs selected to face price negotiations with the federal Medicare program. Those price talks heated up last week after Medicare sent its initial price offers for each drug to the manufacturers. 

Meanwhile, Eli Lilly said higher prices were offset by lower prices of its other diabetes medicine Trulicity and insulin product Humalog.

Trulicity reported $1.67 billion in revenue, down 14% from the same period a year ago. Analysts had expected Trulicity to rake in $1.77 billion in sales for the quarter. 

Humalog saw $366.6 million in revenue for the quarter, down 33% from the year-ago period. Analysts had expected the medicine to book $438 million in sales, according to FactSet.

That decrease isn’t a surprise: Last year, Eli Lilly said it would cut prices of Humalog and another commonly prescribed insulin by 70% and cap monthly out-of-pocket costs at $35 at certain retail pharmacies for people who have private insurance starting May 1, 2023.

Eli Lilly will hold an earnings call with investors at 10:00 a.m. ET on Tuesday. 

Executives will likely be asked about whether the company has made more progress in addressing the supply issues plaguing its weight loss and diabetes drugs. 

There may also be questions related to the timing of the FDA’s decision on Eli Lilly’s experimental Alzheimer’s drug, donanemab, which significantly slowed the progression of the memory-robbing disease in patients at the early stages of it.

The company did not mention the drug in its earnings release.

This is breaking news. Please check back for updates.

The Biden administration will end its Covid-19 vaccine mandates for federal employees, contractors and international air travelers next week.

The White House said in a statement Monday that those vaccine requirements will end on May 11, the same day the Covid public health emergency expires.

“While vaccination remains one of the most important tools in advancing the health and safety of employees and promoting the efficiency of workplaces, we are now in a different phase of our response when these measures are no longer necessary,” the White House said.

Although Covid cases, hospitalizations and deaths have declined dramatically this year, the virus is still killing more than 1,000 people per week.

The Health and Human Services Department also will start phasing out its vaccine mandate for health-care facilities that participate in Medicare and Medicaid, the White House said. In addition, it will end vaccination requirements for Head Start programs.

And the Department of Homeland Security will lift vaccination requirements for people entering the U.S via its land borders with Canada and Mexico, according to the Biden administration. U.S. citizens, nationals and permanent residents were never subject to those requirements.

HHS and DHS will provide more details on the end of these vaccine requirements in the coming days, the White House said.

The Biden administration implemented the vaccine requirements for health workers, federal employees, contractors, and international air travelers as part of its drive to boost lackluster vaccination rates and slow the spread of the virus as the delta variant surged in late 2021 followed by omicron in the winter of 2022.

The mandates faced fierce opposition and lawsuits from critics who decried the requirements as government overreach, while the White House stressed they were essential to protect public health.

President Joe Biden on Monday signed legislation requiring the Office of the Director of National Intelligence to declassify information on any possible links between a lab in China and the origins of the Covid-19 pandemic.

The House and the Senate unanimously passed the legislation earlier this month. The push to make public classified information on the origins of the pandemic comes after the Energy Department concluded with “low confidence” that the virus is likely the result of an accidental laboratory leak in China.

“In implementing this legislation, my Administration will declassify and share as much of that information as possible, consistent with my constitutional authority to protect against the disclosure of information that would harm national security,” Biden said in a statement.

Under the legislation, Director of National Intelligence Avril Haines has 90 days to declassify all information on possible links between the Wuhan Institute of Virology and the origins of Covid. The Wuhan Institute of Virology has been a major center of coronavirus research.

The Federal Bureau of Investigation has also concluded that the pandemic likely began with a lab incident in Wuhan, China, the agency’s director Christopher Wray told Fox News earlier this month.

“The FBI has for quite some time now assessed that the origins of the pandemic are most likely a potential lab incident in Wuhan,” Wray told Fox News. “Here you are talking about a potential leak from a Chinese government-controlled lab.” 

The Wall Street Journal first reported the Energy Department’s assessment, citing people who had read a classified report. White House National Security Advisor Jake Sullivan would not confirm or deny the report, but said Biden had specifically requested that national labs under the Energy Department participate in a review of how the pandemic started.

The pandemic began three years ago in Wuhan, China, though it’s still unknown how Covid spread to people. The intelligence community was divided in a 2021 report ordered by Biden that reviewed information on the pandemic’s origins. The intel agencies agreed that an infected animal and a lab accident were both plausible hypotheses.

Four unnamed agencies in the 2021 report concluded with low confidence that an infected animal spread the virus to people.

A recent analysis conducted by international scientists found genetic material from racoon dogs in samples from the Huanan Seafood Wholesale Market that tested positive for Covid. Though the analysis doesn’t prove the racoon dogs were infected with virus, it provides some additional data that is consistent with a possible virus spillover from animals to people.

The scientists pulled the samples from an international database. The samples subsequently disappeared from that database. The World Health Organization on Friday called on Beijing to release those samples.

“These data could have – and should have – been shared three years ago,” said WHO Director Tedros Adhanom Ghebreyesus. “We continue to call on China to be transparent in sharing data, and to conduct the necessary investigations and share the results.” 

Ukrainian hospitals could run out of oxygen supplies in the next 24 hours as Russia’s invasion disrupts transportation across the country, putting thousands of more lives at risk, according to the World Health Organization.

The WHO, in a statement Sunday, said trucks are unable to transport oxygen supplies from plants to hospitals around the country, including the capital, Kyiv, which faced a barrage of Russian missile attacks overnight.

“The oxygen supply situation is nearing a very dangerous point in Ukraine,” WHO Director-General Tedros Adhanom Ghebreyesus and Europe Regional Director Hans Kluge said in a joint statement. “The majority of hospitals could exhaust their oxygen reserves within the next 24 hours. Some have already run out. This puts thousands of lives at risk,” they said.

Ukraine needs a 25% surge of oxygen supplies compared to the country’s needs before Russia invaded last week, according to the WHO. The global health agency called for the establishment to create a safe transit corridor to increase oxygen supplies to Ukraine via a logistics route through neighboring Poland.

“It is imperative to ensure that lifesaving medical supplies – including oxygen – reach those who need them,” Tedros and Kluge said.

Critical hospital services are also under threat from electricity and power shortages, according to the WHO. Ambulances transporting patients are in danger of getting caught in the crossfire between Russian and Ukrainian troops, the global health agency said.

Oxygen supplies are crucial for patients with Covid-19, as well people with health complications stemming from pregnancy and childbirth, chronic illnesses, sepsis, injuries and trauma, according to the WHO. There are currently 1,700 people hospitalized with Covid in Ukraine.

The WHO said Ukraine had made significant progress in strengthening its health-care system before Russia’s invasion, including scaling up oxygen therapy to treat patients critically ill with Covid-19. “This progress is now at risk of being derailed during the current crisis,” Tedros and Kluge said.

Ukraine has faced a surge of omicron Covid infections, with cases rising a staggering 555% between Jan. 15 and Feb. 25, according to a report from the U.N. Office for the Coordination of Humanitarian Affairs. The country faces an increased risk of Covid contagion as civilians flee the Russian invasion. Another Covid outbreak combined with increasing numbers of people injured in the war will put even more pressure on Ukraine’s already stretched health-care system, according to the U.N. report.

Ukraine has suffered at least 240 civilian casualties since the Russian invasion began including 64 dead and 176 injured, according to the U.N. report. However, the U.N. humanitarian affairs agency believes the actual number of civilian casualties is considerably higher.

More than 368,000 people have fled Ukraine to neighboring European countries, according to the U.N. refugee agency. The Ukrainian government estimates that the Russian invasion could result in 5 million refugees in a worst-case scenario.

Many Ukrainians are fleeing to Hungary, Poland, Romania and Slovakia. The U.N. has said the scale of the humanitarian crisis will test the capacity of neighboring nations. The U.N refugee agency has posted information in Ukrainian, Russian and English for people seeking assistance.

Damage to civilian infrastructure has left hundreds of thousands of people are without electricity or water, according to the U.N. Hundreds of homes have been damaged or destroyed, and the shelling of bridges and roads has left some communities cut off from markets, according to the U.N.

“The ongoing conflict continues to have severe human costs, causing a growing number of civilian casualties, interrupting livelihoods and damaging critical civilian infrastructure, including hundreds of homes, water and sanitation infrastructure, schools and health facilities,” the U.N. humanitarian affairs office said.

The fighting has forced U.N. agencies and international humanitarian organizations to pause response activities in many parts of the country. However, the U.N. and its partners remain on the ground and are prepared to scale-up operations when they have better access to the hardest-hit areas and the security situation allows a full rollout of humanitarian assistance, according to the U.N. report.