INDIANAPOLIS (AP) — Eli Lilly beat expectations for the second quarter, with diabetes drug Mounjaro and its weight-loss counterpart Zepbound bringing the drugmaker sales of more than $4 billion.
In addition, Lilly raised its forecast for the year well above Wall Street expectations as newer drugs such as Zepbound gained momentum.
The company’s shares jumped on Thursday after Lilly announced its quarterly results.
Mounjaro’s sales more than tripled in the quarter to nearly $3.1 billion. Zepbound, which is made from the same molecule, brought in $1.2 billion two quarters after the drug’s approval.
David Risinger, an analyst at Leerink Partners, noted that Zepbound’s insurance coverage improved and Mounjaro’s revenue outside the U.S. exceeded expectations.
Supply issues that hampered access earlier this year also appear to be easing. Lilly noted that a U.S. regulator website that lists drug shortages currently lists all doses of Zepbound as available.
However, Lilly CEO David Ricks warned that there could still be delays in filling prescriptions for patients. In a conference call on Thursday, he told analysts that while Lilly can fill orders as they come in, that does not mean pharmacies will have all 12 doses of Mounjaro and Zepbound in stock.
The CEO noted that this may not be feasible for stores and some customers may have to wait a few days for their orders to be fulfilled.
Overall, Lilly’s profits rose 68% to $2.97 billion in the second quarter. Sales climbed 36% to $11.3 billion. Adjusted earnings were $3.92 per share.
According to FactSet, analysts had expected earnings of $2.74 per share on sales of $9.97 billion.
TD Cowen analyst Steve Scala said in a separate note that nearly all of the company’s major products exceeded sales expectations for the quarter, including insulin Humalog, which posted sales of $632 million.
Lilly now expects its adjusted annual earnings to be between $16.10 and $16.60, more than two dollars higher than the Wall Street consensus of $13.69.
Lilly also raised its forecast above expectations when it announced its first-quarter results in April.
According to FactSet, analysts expect Mounjaro and Zepbound to generate combined revenue of more than $15 billion this year. By the end of the decade, combined revenue could exceed $40 billion.
Shares of Indianapolis-based Eli Lilly and Co. rose more than 9% to $845.42 on Thursday afternoon. The Standard & Poor’s 500 Index rose more than 2%.
The stock has already reached several new all-time high prices this year, the most recent of which came last month when the stock reached $966.10.
