Eli Lilly hikes guidance as obesity drug sales soar
By Josh White
Date: Thursday 08 Aug 2024
(Sharecast News) - Eli Lilly significantly raised its full-year revenue forecast by $3bn on Thursday, after reporting a strong second quarter driven by the robust performance of its blockbuster weight loss and diabetes drugs Zepbound and Mounjaro.
The Indianapolis-based pharmaceutical giant reported a 36% increase in revenue for the quarter, with Mounjaro generating $3.09bn and Zepbound $1.24bn, surpassing analysts' expectations by over $750m.
Both Mounjaro and Zepbound are brand names for its tirzepatide injectable, which is approved for both diabetes and obesity treatment in the US and the UK.
Lilly said it had improved its supply chain, allowing for better stocking at wholesalers, which accounted for a significant portion of the quarter's sales.
In response to the strong performance, Lilly raised its 2024 profit forecast, with adjusted earnings per share now expected to be between $16.10 and $16.60, up from a previous estimate of $13.50 to $14.
The company also increased its overall revenue guidance to a range of $45.4bn to $46.6bn.
Lilly's market position was further bolstered by recent approvals and progress in its drug pipeline, including US approval of Kisunla for Alzheimer's disease and Jaypirca in Japan for mantle cell lymphoma.
The firm also highlighted ongoing efforts to expand manufacturing capacity, with a $5.3bn investment in Indiana and a new plant in North Carolina expected to start operations later in the year.
"Mounjaro, Zepbound and Verzenio led our strong financial performance in the second quarter as we advanced our manufacturing expansion agenda, and it is equally exciting to see the growth around the world of our medicines for cancer, neurological disorders and autoimmune diseases," said chair and chief executive officer David Ricks.
"We also recently received approval of Kisunla to help people with Alzheimer's disease, a moment that was decades in the making.
"Lilly's performance and progress in Alzheimer's, metabolic disorders and many other serious diseases highlight the tenacity, focus and capability of our scientists, clinicians, engineers, customer teams and collaborators."
At 0952 EDT (1452 BST), shares in Eli Lilly and Company were up 9.25% in New York at $843.53.
Reporting by Josh White for Sharecast.com.
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