On September 17, 2020, the Eli Lilly and Company trademark appeared in an office of the company in San Diego, California.
Mike Black | Reuters
Eli Lilly and Company reported Thursday Second quarter profit It beat revenue expectations and raised its full-year revenue forecast by $3 billion as sales of its blockbuster diabetes drug Mounjaro and weight-loss injection Zepbound soared.
Eli Lilly’s shares rose more than 9% in pre-market trading Thursday.
The drugmaker now expects full-year adjusted earnings per share of $16.10 to $16.60, up from previous guidance of $13.50 to $14 per share.
The company also expects revenue this year to be between $45.4 billion and $46.6 billion, an increase of $3 billion on either end.
Eli Lilly said guidance growth was “primarily driven by strong performance of Mounjaro and Zepbound,” in part due to “greater clarity” on the company’s manufacturing expansion and plans to launch Mounjaro outside the U.S. The company said it reached several supply-related milestones during the quarter but did not provide specific details.
Demand far outstrips supply for incretin drugs such as Zepbound and Mounjaro, which mimic hormones produced in the gut that suppress a person’s appetite and regulate blood sugar. That’s forcing Eli Lilly and rival Novo Nordisk to invest heavily in boosting manufacturing.
But Eli Lilly’s supply woes may be starting to ease. On Friday, the U.S. Food and Drug Administration’s drug database said all doses of Zepbound and Mounjaro are available in the United States after a prolonged shortage.
“We’re seeing incredible demand, but we’re not even trying that hard to market the drug,” Eli Lilly CEO David Ricks told CNBC. “What you’re seeing is just organic demand from consumers because We’re shipping more products in the U.S. and driving more purchases online.”
Ricks said the company has built six manufacturing plants, some of which are already expanding, and has hired thousands of workers to increase production.
Here’s how Eli Lilly’s second-quarter report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted $3.92, expected $2.60
- income: US$11.30 billion, expected US$9.92 billion
The pharmaceutical giant’s second-quarter net profit was $2.97 billion, or $3.28 per share. That compares with profit of $1.76 billion, or $1.95 per share, a year ago.
Excluding one-time items related to the value of intangible assets and other adjustments, Eli Lilly reported second-quarter 2024 earnings of $3.92 per share.
The company reported second-quarter revenue of $11.3 billion, a 36% increase from the same period last year.
Eli Lilly said sales were primarily driven by increased demand for Mounjaro and Zepbound due to increased U.S. production and improved supply.
This is Zepbound’s second full quarter in the U.S. market after receiving regulatory approval last November. The weekly infusion brought in sales of $1.24 billion, well above analysts’ expectations of $922.2 million, according to StreetAccount.
Meanwhile, Mounjaro’s second-quarter revenue was $3.09 billion, more than three times its sales in the same period last year. Analysts expected sales of $2.39 billion, according to StreetAccount.
Eli Lilly’s shares are up more than 30% this year after rising nearly 60% in 2023, as demand for the company’s weight loss and diabetes drugs soars and investor interest grows in its potential as a treatment for other health conditions. The product is popular despite high monthly prices, inconsistent insurance coverage and intermittent supply shortages.
Eli Lilly is the largest pharmaceutical company in the United States, with a market value of more than $730 billion
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