Eli Lilly & Company's weight loss drug expansion enters a critical period, welcoming a new CFO
US pharmaceutical giant Eli Lilly appointed Lucas Montarce as its new Chief Financial Officer, effective immediately. This personnel change comes as the company invests billions of dollars in expanding production to meet the surging demand for diabetes and weight loss drugs. Despite the FDA approval of the drugs, there are still supply shortage issues. Eli Lilly's stock price has surged by nearly 54.9% this year
On Monday, September 9th, Eastern Time, the American pharmaceutical company Lilly announced the appointment of Lucas Montarce, a senior financial expert within the company, as the new Chief Financial Officer, effective immediately. This appointment comes after the former CFO, Anat Ashkenazi, left to join Google's parent company, Alphabet, a few months ago.
This executive change at Lilly comes at a critical time as the company is investing billions of dollars to expand its production capacity to meet the surging demand for its diabetes and weight loss drugs such as Mounjaro and Zepbound.
Following the announcement, Lilly's pre-market stock rose over 1.5%, but the stock fell nearly 0.8% after rising over 1.4% in early trading. Due to the high demand for weight loss drugs, as of the close of last Friday, Lilly's stock price has surged nearly 54.9% year-to-date. Analysts predict that by the early 2030s, the global weight loss drug market could exceed $150 billion.
Lucas Montarce has been with Lilly since 2001 and brings extensive financial management experience. He has served as a finance director in Lilly's research laboratory and international division, and earlier this year, he was appointed President and General Manager of Lilly's Spain, Portugal, and Greece region. In his new role, Montarce will serve as both Chief Financial Officer and Executive Vice President, with a base salary of $1 million and eligibility for a $1 million annual target bonus.
While Lilly's drugs are approved for use by the U.S. Food and Drug Administration (FDA), they remain on the FDA's official drug shortage list and have spent most of their time on this list, highlighting the challenges in supply chain management and production capacity in the weight loss drug industry. Currently, both Lilly and Novo Nordisk are struggling to meet the significant demand for their weight loss drugs. Lilly has recently increased its production capacity and raised its annual sales forecast by $3 billion. In contrast, Novo Nordisk fell short of expectations in the most recent quarter.
