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Eli Lilly on Tuesday raised its full-year guidance as second-quarter profit jumped 85% from the identical period a 12 months ago on strong sales from the pharmaceutical giant’s diabetes treatment Mounjaro and other drugs.
The corporate now expects full-year revenue of between $33.4 billion and $33.9 billion, up from a previous forecast of $31.2 billion to $31.7 billion.
Eli Lilly also increased its adjusted earnings guidance to a spread of $9.70 to $9.90 per share for the 12 months, up from a spread of $8.65 to $8.85.
Shares of Eli Lilly closed nearly 15% higher Tuesday.
Here’s how Eli Lilly performed, compared with Wall Street expectations, based on a survey of analysts by Refinitiv:
- Adjusted earnings: $2.11 per share, vs. $1.98 per share expected
- Revenue: $8.31 billion, vs. $7.58 billion expected
The corporate booked net income of $1.76 billion, or $1.95 per share, for the quarter. That is up from net income of $952.5 million, or $1.05 per share, for the same period a 12 months ago.Â
Accounting for charges related to some intangible assets and losses on securities, the corporate recorded adjusted income of $1.9 billion, or $2.11 per share.
The corporate’s $8.31 billion in sales for the quarter marked a 28% increase from the identical period a 12 months ago.Â
“Our business saw an acceleration of revenue growth, driven by Mounjaro, Verzenio and Jardiance,” Eli Lilly CEO David Ricks said during an earnings call.
Drug results
Mounjaro, the corporate’s Type 2 diabetes injection, posted $979.7 million in sales for the quarter. The drug was first approved within the U.S. in May 2022 and notched just $16 million in sales within the year-ago period.Â
Investors have pinned high hopes on Mounjaro’s potential mega-blockbuster trajectory beyond diabetes, with some research suggesting that it might be even more practical at reducing weight than Novo Nordisk’s popular Wegovy and Ozempic injections.
Last month, Eli Lilly filed for Food and Drug Administration approval of the injection for chronic weight management.
The corporate said it “has experienced and continues to expect intermittent delays fulfilling orders of certain Mounjaro doses given significant demand.”
Eli Lilly CFO Anat Ashkenazi noted during an earnings call that the corporate is ramping up capability at a latest manufacturing facility in North Carolina that produces Mounjaro and similar drugs.Â
But she said supply will “likely remain tight in the approaching months and quarters.”
Revenue growth was also driven by sales of breast cancer pill Verzenio, which rose 57% to $926.8 million for the quarter. Sales of Jardiance, a tablet that lowers blood sugar in Type 2 diabetes patients, climbed 45% to $668.3 million for the second quarter.
The corporate in April sold the rights to its emergency diabetes treatment Baqsimi to Amphastar Pharmaceuticals, which brought in $579 million to the highest line throughout the second quarter.
But sales of cancer drug Alimta weighed on revenue. The treatment, first launched in 2004, saw sales plunge 73% to $60.9 million for the second quarter.Â
Alimta’s last U.S. patent expired in May, leading to lower demand as cheaper generic competitors entered the market.Â
Eli Lilly also reported no sales from its Covid-19 antibody treatments, compared with $129 million within the second quarter of 2022. The Food and Drug Administration rescinded its approval of the corporate’s antibody bebtelovimab in November.
Ricks noted that the corporate expects strong growth to proceed within the quarters ahead as “headwinds from Covid antibody revenue and Alimta’s lack of exclusivity recede.”
Novo Nordisk data
Eli Lilly shares on Tuesday were also boosted by latest late-stage data from rival Novo Nordisk, which found that its obesity treatment Wegovy reduced the danger of cardiovascular events like heart attack and stroke by 20%.Â
The outcomes suggest that Wegovy and similar obesity and diabetes medications like those in development by Eli Lilly and others could have long-lasting health advantages beyond shedding unwanted kilos.
The outcomes could also “support access for any payers who’re on the fence” about covering obesity medications, Michael Mason, president of Eli Lilly’s diabetes division, said during an earnings call.
Mason added that the outcomes should “turn the conversation on the advantages of weight reduction away from aesthetics and more towards the health advantages of individuals living with obesity.”
For instance, obese people have a 26% increased risk of heart disease in comparison with those with normal weight.
Eli Lilly’s stock has been on a tear in recent months, driven partially by positive trial results for its Alzheimer’s drug, donanemab, and the corporate’s progress with its promising obesity drug pipeline.Â
Shares of Eli Lilly are up greater than 42% for the 12 months. With a market value of roughly $495 billion, Eli Lilly is now the most important pharmaceutical company based within the U.S.
