Eli Lilly easily tops quarterly estimates, raises outlook as Zepbound and Mounjaro sales surge

Eli Lilly reported a remarkable second-quarter performance, surpassing analysts' expectations and raising its revenue forecast for the year. The company's blockbuster drugs, Zepbound and Mounjaro, experienced a surge in demand, driving a significant boost in sales. For the quarter, Eli Lilly anticipates revenue between $85 billion and $87 billion, an increase from the previous guidance of $82 billion to $85 billion.

Its projected full-year adjusted profit per share now ranges from $35.50 to $36.50, up from $35.50 to $37 per share earlier. The company explained the upward revision by a $2.78 per share midpoint, partially offset by $3.03 per share charges related to quarter agreements. Despite lower prices for its medications in the U.S., Lilly's Mounjaro and Zepbound continue to be popular, with Mounjaro's worldwide revenue climbing 91% to $9.94 billion, with U.S. sales reaching $4.8 billion.

International Mounjaro sales jumped 172%, while Zepbound saw a 44% rise in U.S. revenue to $4.93 billion. The newly launched obesity drug, Foundayo, sold $98 million in the second quarter, exceeding analysts' estimates of nearly $103 million. For the quarter, Eli Lilly's net income stood at $7.10 billion, or $7.94 per share, including $3.03 per share in deal-related charges.

Excluding non-recurring items, the company reported earnings of $8.38 per share. Lilly's CEO, Dave Ricks, expects lower prices to increase prescription volumes in the U.S., projecting global GLP-1 use to rise from 20 million patients to 30 million by the end of 2026. With Medicare's new coverage of obesity drugs beginning in July, both Lilly and Novo Nordisk are set to benefit in the second half of the year.