Eli Lilly Smashed Estimates Thanks To Unbelievable Demand For Its Diabetes And Weight Loss Blockbusters

On Thursday, Eli Lilly and Company LLY reported its second quarter results, smashing estimates fueled by the popularity of its blockbuster diabetes drug Mounjaro and weight loss injection Zepbound. Without giving any specific details, the pharmaceutical company did reveal it reached several supply related milestones during the quarter. The second quarter results reflect Eli Lilly’s leading position in the lucrative weight loss field, which even the mighty Pfizer Inc PFE is struggling to access.

Impressive Second Quarter Results

For the second quarter, revenue rose almost 36% to $11.30 billion, fueled by the success of Mounjaro and Zepbound, the type-2 diabetes and weight loss drugs. Mounjaro’s sales alone more than tripled compared to last year’s comparable quarter as it brought in $3.09 billion. 

On the other hand, its rival Novo Nordisk NVO reported weaker than expected second quarter sales of its weight loss drug Wegovy and diabetes injection Ozempic. Novo Nordisk elaborated that Wegovy’s revenue suffered due to higher-than-expected price concessions to U.S. pharmacy benefit managers who act on behalf of insurers in arranging discounts with manufacturers. Unlike Novo Nordisk, Eli Lilly’s blockbusters enjoyed greater popularity despite hefty monthly price tags, inconsistent insurance coverage and intermittent supply shortages.

With new product sales growing by nearly $3.5 billion, Eli Lilly easily topped LSEG’s consensus revenue estimate of $9.92 billion.

Net income of $2.97 billion, or $3.28 a share, also significantly rose from 2023’s comparable quarter when Eli Lilly earned a profit of $1.76 billion, or $1.95 a share. Adjusted earnings per share soared 85% YoY to $3.92, also smashing LSEG’s consensus estimate of $2.60.

A Hiked Full Year Guidance

Eli Lilly and Company hiked its revenue for the year by $3 billion at both ends as it now guided for a range between $45.4 billion and $46.6 billion. 

Eli Lilly also raised its full-year adjusted earnings to a range between $16.10 to $16.60, up from its previous guidance of $13.50 to $14 per share.

Eli Lilly’s results suggest its leadership in the weight loss race.

Demand has far outstripped supply for Zepbound and Mounjaro, which mimic hormones produced in the gut to suppress a person’s appetite and regulate their blood sugar. Like its rival, Novo Nordisk, Eli Lilly is investing heavily to boost manfacturing. Eli Lilly is undoubtedly ahead of Pfizer in the weight loss race. Pfizer is advancing with its efforts to reach this lucrative market, but it is still far from finding a solution to its post pandemic fall from grace. After dropping its twice-daily anti-obestiy pill due to side-effects, Pfizer reported encouraging news with its once-daily version back in July, but it's not there yet.

Eli Lilly expects incretin drug production in the second half of the year to be 50% higher compared to 2023's second half. Second quarter results show that growth trajectory accelerated with significant investments in advancing innovative medicine and focus on expanding manufacturing.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.