Eli Lilly’s Blockbuster Drugs Fuel Stellar Quarter, Driving Up Guidance
Los Angeles, CA – Eli Lilly, the pharmaceutical giant, has announced impressive first-quarter results, surpassing Wall Street expectations and raising its full-year guidance. The company’s blockbuster diabetes drug Mounjaro and the recently launched weight loss treatment Zepbound are driving the surge in growth.
Record-Breaking Growth and Revised Guidance
Eli Lilly’s executives now anticipate adjusted earnings of .50 to .00 per share for the full year, up from the previous estimate of .20 to .70. Additionally, revenue is projected to range between .4 billion and .6 billion, representing an increase of billion at both ends of the range.
Analysts surveyed by LSEG had predicted adjusted earnings of .50 per share and sales of .44 billion. The increased guidance reflects Eli Lilly’s confidence in its ability to meet the soaring demand for its top-selling drugs.
Zepbound’s Meteoric Rise
In its first full quarter on the U.S. market, Zepbound generated sales of 7.4 million, despite experiencing supply shortages that are expected to persist through June. Experts believe that the weekly injection could achieve over billion in sales during its first year, potentially establishing it as one of the most successful drugs ever.
Insatiable Demand for Mounjaro and Zepbound
Eli Lilly attributed the exceptional growth to the overwhelming demand for Mounjaro and Zepbound, driven by their effectiveness as incretin drugs that suppress appetite and regulate blood sugar. The company noted that supply expansion efforts are ongoing, with significant production increases anticipated in the second half of the year.
Financial Highlights
- Adjusted earnings per share: .58 vs. expected .46
- Revenue: .77 billion vs. expected .92 billion
- Net income: .24 billion (.48 per share) vs. .34 billion (.49 per share) a year ago
Shares of Eli Lilly soared by nearly 7% in premarket trading, extending their year-to-date gains to 26%. The company’s market capitalization now stands at approximately 0 billion, making it the largest pharmaceutical company headquartered in the United States.
Mixed Performance for Diabetes Drugs
Eli Lilly’s other top-selling diabetes drugs, Mounjaro and Trulicity, delivered mixed results. Mounjaro’s sales reached .81 billion, beating expectations but falling short of analyst estimates. The company attributed the revenue increase to higher drug prices.
On the other hand, Trulicity’s sales fell by 26% to .46 billion, due to supply constraints and competition. Eli Lilly cited lower demand and reduced realized prices outside the U.S.
Other Drugs Fall Short
Revenue from Eli Lilly’s breast cancer pill Verzenio rose by 40% to .05 billion, driven by increased demand. However, analysts had anticipated sales of .11 billion.
Similarly, sales of Jardiance, a diabetes drug shared with Boehringer Ingelheim, grew by 19% to 6.5 million, below analyst expectations of 8.3 million. This drug is among the first ten selected for price negotiations with Medicare.
The Path Ahead
Eli Lilly’s strong results and optimistic outlook underscore the company’s leadership in the development and manufacturing of life-changing treatments. As production capacity expands and supply shortages ease, Eli Lilly is well-positioned to continue delivering strong financial performance and benefiting patients worldwide.
Data sourced from: cnbc.com
