Eli Lilly recently announced their second-quarter earnings and revenue, surpassing expectations and prompting a significant increase in their full-year revenue outlook. The success was attributed to the soaring sales of their blockbuster diabetes drug, Mounjaro, and weight loss injection, Zepbound. As a result, the company’s shares surged by more than 7% following the announcement, indicating a positive response from investors.
The pharmaceutical giant raised its full-year revenue forecast by $3 billion, projecting a revenue range of $45.4 billion to $46.6 billion for the year. Additionally, Eli Lilly adjusted its full-year earnings guidance to a range of $16.10 to $16.60 per share, a significant increase from the previous estimate. The boost in guidance was primarily driven by the exceptional performance of Mounjaro and Zepbound, coupled with improved clarity regarding the company’s production expansions and planned launches of Mounjaro outside the U.S.
During the quarter, Eli Lilly achieved several supply-related milestones without disclosing specific details. The demand for incretin drugs such as Zepbound and Mounjaro exceeded supply, prompting the company to invest heavily in manufacturing expansion. While supply challenges have been prevalent, there are signs of improvement. The Food and Drug Administration’s drug database indicated that all doses of Zepbound and Mounjaro are now available in the U.S. after extended shortages. However, Eli Lilly cautioned that expected demand increases may lead to intermittent “supply tightness” for certain doses of their incretin drugs.
To address the overwhelming demand, Eli Lilly has undertaken substantial measures to boost production. The company has constructed six manufacturing plants, some of which are already operational, and has hired thousands of workers to scale up production. Eli Lilly anticipates that incretin drug production in the second half of 2024 will be 50% higher than the previous year. Furthermore, the company remains focused on developing more convenient weight loss pills to meet the escalating demand.
In the second quarter, Eli Lilly reported robust financial results, surpassing Wall Street estimates. The pharmaceutical giant recorded earnings per share of $3.92 (adjusted) compared to the expected $2.60 and generated revenue of $11.30 billion, exceeding the $9.92 billion forecasted. The impressive performance was driven by strong sales of Mounjaro and Zepbound, supported by enhanced supply in the U.S. Zepbound, in its second quarter on the market, generated $1.24 billion in sales, surpassing analysts’ projections. Similarly, Mounjaro saw a substantial increase in revenue, reaching $3.09 billion for the quarter.
Shares of Eli Lilly have surged over 30% year-to-date, following a remarkable 60% increase in 2023. The company’s weight loss and diabetes drugs have witnessed unprecedented demand, attracting heightened investor interest. The successful performance in the second quarter and the optimistic outlook for the full year indicate a promising trajectory for Eli Lilly as it continues to innovate and meet the evolving healthcare needs of consumers.
Eli Lilly’s exceptional second-quarter results underscore its strong position in the pharmaceutical industry and its ability to capitalize on the growing demand for innovative healthcare solutions. As the company continues to expand its production capacity and develop new offerings, it stands poised for sustained growth and success in the market.