Eli Lilly exceeded expectations in the second quarter largely due to the success of their diabetes treatment Mounjaro and weight loss drug Zepbound, which generated over $4 billion in sales for the company. As a result, Lilly has raised its forecast for the year significantly, surpassing Wall Street estimates, with newer drugs like Zepbound gaining momentum.
The impressive quarterly results were detailed by Lilly, causing the company’s shares to soar before the markets opened on Thursday. Sales of Mounjaro skyrocketed to nearly $3.1 billion, triple the previous quarter’s sales, while Zepbound, derived from the same molecule, brought in $1.2 billion following regulatory approval.
Additionally, sales of the breast cancer treatment Verzenio saw a 44% increase, reaching $1.3 billion. Analysts, including TD Cowen’s Steve Scala, noted that almost all of Lilly’s key products exceeded sales expectations for the quarter, including the insulin Humalog, which generated $632 million in revenue.
In terms of financial performance, Lilly’s profit surged by 68% to $2.97 billion, with revenue climbing 36% to $11.3 billion. Adjusted earnings stood at $3.92 per share, surpassing analyst expectations of $2.74 per share on revenue of $9.97 billion, according to FactSet.
Looking ahead, Lilly now anticipates that its adjusted earnings for the year will fall between $16.10 and $16.60, significantly higher than the Wall Street consensus of $13.69. This marks a continuation of their trend of surpassing expectations, which started with their first-quarter results announced in April.
As a result of these positive developments, shares of Eli Lilly and Co., based in Indianapolis, surged by more than 11% to nearly $9, reaching $862.27 in premarket trading. The stock has experienced several new all-time high prices this year, with the latest milestone occurring last month when shares peaked at $966.10.
