Eli Lilly on Wednesday fell short of third-quarter profit and revenue expectations, pressured by disappointing sales of its blockbuster weight-loss drug Zepbound and diabetes treatment Mounjaro, and cut its full-year adjusted profit forecast.

The company’s shares fell more than 12% in morning trading. Shares of its main rival, Novo Nordiskfell by more than 3%.

Eli Lilly now expects full-year adjusted earnings between $13.02 and $13.52 per share, down from its previous guidance of $16.10 to $16.60 per share. The drugmaker cited a $2.8 billion charge recorded during the third quarter related to its acquisition of intestinal disease drugmaker Morphic Holding that hurt results.

Eli Lilly also lowered the top end of its revenue guidance for the year and now expects revenue between $45.4 billion and $46 billion. The company’s previous expectations called for revenue as high as $46.6 billion.

Here’s what Eli Lilly reported for the period ending September 30, compared to what Wall Street expected, based on a survey of analysts by LSEG:

• Earnings per share: $1.18 adjusted versus $1.47 expected
• Gain: $11.44 billion versus $12.11 billion expected

The September period marked Zepbound’s third full quarter in the US market, after receiving regulatory approval almost a year ago. The weekly injection delivered $1.26 billion in revenue for the period, less than the $1.76 billion analysts expected, according to StreetAccount.

Meanwhile, Mounjaro posted revenue of $3.11 billion in the third quarter, more than double what it posted in the same period a year ago. But analysts expected sales of $3.77 billion for the diabetes treatment, according to StreetAccount.

Demand in the U.S. has far exceeded supply for Lilly’s incretin drugs, such as Zepbound and Mounjaro, over the past year. Both treatments mimic certain gut hormones to suppress a person’s appetite and regulate blood sugar levels.

The popularity of these injectable drugs has forced both Eli Lilly and Novo Nordisk to invest billions to increase production capacity for the treatments.

Eli Lilly’s supply problems began to ease earlier this year. On Wednesday, the Food and Drug Administration’s drug database reported that all doses of Zepbound and Mounjaro are available in the U.S. after prolonged shortages. Still, the agency warns that patients may not always be able to immediately fill their prescription for those medications at a particular pharmacy.

In an interview with CNBC, Eli Lilly CEO David Ricks said Zepbound and Mounjaro’s third-quarter performance is “not a function of supply.” The company said sales of the drugs in the third quarter were negatively affected by inventory declines at wholesalers.

Ricks also said the company has scaled back plans to advertise and promote Zepbound due to the level of customer service. The drugmaker will begin these efforts in November, he said.

“When people go and they can’t get their medications, they’re very frustrated. That’s what they tell us. So we didn’t necessarily want to send more people to do that,” Ricks said.

Eli Lilly has said it expects production of incretin drugs to be 50% higher in the second half of 2024 than in the same period last year. And Ricks said Wednesday that the company expects “even larger” production capacity expansions by the end of the year and 2025.

For the third quarter, Ely Lilly posted net income of $970.3 million, or $1.07 per share, compared to a net loss of $57.4 million, or 6 cents per share, in the third quarter of 2023.

Excluding one-time items related to the value of intangible assets and other adjustments, Eli Lilly posted earnings of $1.18 per share for the most recent quarter.

Revenue rose 20% year over year to $11.44 billion.

The FDA’s decision to remove tirzepatide, the active ingredient in Zepbound and Mounjaro, from the shortage list has drawn fierce opposition from compounding pharmacies that make customized and sometimes cheaper alternatives to Eli Lilly brand drugs. Compounding pharmacies are calling on the FDA to reconsider its decision as both Eli Lilly and Novo Nordisk attempt to crack down on unapproved versions of their best-selling drugs.

Ricks told CNBC that the company agrees with the FDA that there are no longer shortages of Zepbound and Mounjaro, adding, “We have inventory.” He said compounded versions of Eli Lilly brand drugs are not regulated by the FDA, raising questions about their safety and efficacy.