Eli Lilly’s strong second-quarter performance has exceeded expectations, driven by booming sales of its diabetes medication Mounjaro and weight loss injection Zepbound. The company has significantly raised its revenue outlook and reported a substantial increase in earnings.
Key Highlights
- Earnings and Revenue
- Earnings per Share (EPS): $3.92 (adjusted), surpassing the $2.60 forecast.
- Revenue: $11.30 billion, exceeding the $9.92 billion estimate.
- Net Income: $2.97 billion ($3.28 per share), up from $1.76 billion ($1.95 per share) a year earlier.
- Revenue Outlook
- Eli Lilly has increased its full-year revenue guidance to between $45.4 billion and $46.6 billion, up by $3 billion at both ends of the range.
- The company also raised its full-year adjusted earnings forecast to $16.10 to $16.60 per share, from the previous range of $13.50 to $14 per share.
- Drug Sales
- Mounjaro: Generated $3.09 billion in sales, more than triple the amount from the same period last year. Analysts had expected $2.39 billion.
- Zepbound: Achieved $1.24 billion in sales, well above the anticipated $922.2 million.
- Supply and Demand
- Despite previous supply issues, all doses of Zepbound and Mounjaro are now available in the U.S. after extended shortages.
- Eli Lilly has ramped up production, with plans to increase output of incretin drugs by 50% in the latter half of 2024 compared to the previous year.
- Future Outlook
- Eli Lilly is working on developing more convenient weight loss pills to meet growing demand.
- The company has built six new manufacturing plants and hired thousands of workers to boost production.
- Stock Performance
- Shares of Eli Lilly closed over 9% higher on Thursday and have risen more than 30% this year, following a nearly 60% increase in 2023.
Market Context
Eli Lilly’s success with Mounjaro and Zepbound contrasts with challenges faced by competitors. Novo Nordisk reported weaker-than-expected sales for its weight loss drug Wegovy and diabetes injection Ozempic, partly due to pricing pressures.