Weight Loss Drugs Drove Eli Lilly's Massive Profit - But They Still Cut Their Annual Profit Guidance, Here's Why

Eli Lilly And Co LLY has reported Q3 sales of $9.49 billion, up 37% Y/Y, beating the consensus of $8.95 billion, driven by growth from Mounjaro, Verzenio, and Jardiance, as well as $1.42 billion from the sale of rights for the olanzapine portfolio (Zyprexa). 

Excluding revenue from the olanzapine portfolio and COVID-19 antibodies, revenue in Q3 increased 24%.

Mounjaro (Type 2 diabetes injection) sales reached $1.41 billion compared to a mere $187.3 million a year ago.

Also Read: FDA Gives Nod To Eli Lilly's First Treatment For Type Of Inflammatory Bowel Disease, To Compete With JNJ, Pfizer, AbbVie.

In Q3 2023, Lilly experienced intermittent delays fulfilling orders of certain Mounjaro doses given significant demand, which affected volume.

Verzenio (breast cancer) sales increased 68% at $1.04 billion.

Diabetes drug Jardiance sales increased 22% to $700.8 million.

Eli Lilly recorded pre-tax "in-process research and development" charges of $2.98 billion, primarily related to recent buyouts, including DICE Therapeutics, Versanis Bio, and Emergence Therapeutics AG. 

Eli Lilly posted an adjusted EPS of $0.10, beating the consensus loss of $(0.15) but down from $1.98 a year ago.

Guidance: Eli Lilly sees FY23 adjusted EPS of $6.50-$6.70 versus prior guidance of $9.70-$9.90 and consensus of $7.97.

The company reaffirms its FY23 revenue forecast to $33.4-$33.9 billion versus the consensus of $33.42 billion.

Price Action: LLY shares are up 4.83% at $581.03 during on the last check Thursday.