Q2 2023 Earnings Report for Eli Lilly (LLY)

On Tuesday, Eli Lilly, a leading pharmaceutical company, raised its full-year guidance as second-quarter profit surged 85% compared to the same period last year. The increase in profit was driven by strong sales from the company’s drug pipeline. Eli Lilly now expects full-year revenue between $33.4 billion to $33.9 billion, surpassing its previous forecast of $31.2 billion to $31.7 billion. The company also revised its adjusted earnings guidance to a range of $9.70 to $9.90 per share for the year, up from $8.65 to $8.85.

This positive news led to a 9% jump in Eli Lilly’s shares during premarket trading on Tuesday. Here’s a comparison of how Eli Lilly performed in the second quarter, as compared to Wall Street expectations:

• Adjusted earnings: $2.11 per share, surpassing the expected $1.98 per share
• Revenue: $8.31 billion, surpassing the expected $7.58 billion

The company reported net income of $1.76 billion, or $1.95 per share, for the quarter, a significant increase from $952.5 million, or $1.05 per share, in the same period last year. Accounting for charges associated with intangible assets and losses on securities, Eli Lilly recorded adjusted income of $1.9 billion, or $2.11 per share. The company’s sales for the quarter reached $8.31 billion, a 28% increase from the same period last year.

The revenue growth was primarily driven by the strong sales of Eli Lilly’s breast cancer pill Verzenio, which saw a 57% increase to $926.8 million for the quarter. Sales of Jardiance, a tablet for Type 2 diabetes patients, rose 45% to $668.3 million in the second quarter. Additionally, the company’s newer drug Mounjaro, an injection for Type 2 diabetes, contributed to revenue growth with $979.7 million in sales, compared to just $16 million in the same period last year. Mounjaro is also being explored for its potential in weight reduction, with research suggesting it may be more effective than Novo Nordisk’s popular Wegovy and Ozempic injections.

Eli Lilly recently filed for FDA approval of Mounjaro for chronic weight management. However, the company has experienced intermittent delays in fulfilling orders due to high demand. In other developments, Eli Lilly sold the rights to its emergency diabetes treatment Baqsimi to Amphastar Pharmaceuticals, generating $579 million in sales during the second quarter. On the other hand, sales of the cancer drug Alimta declined by 73% to $60.9 million in the second quarter due to increased competition from generic alternatives.

Notably, Eli Lilly reported no sales from its Covid-19 antibody treatments in the second quarter, compared to $129 million in the same period last year. This was due to the FDA rescinding its approval of the company’s antibody bebtelovimab in November.

Eli Lilly’s stock has been performing exceptionally well, driven by positive trial results for its Alzheimer’s drug, donanemab, and the progress of its obesity drug pipeline. The company’s shares have risen more than 24% this year, and it currently holds a market value of approximately $431 billion, making it the second-largest pharmaceutical company in the U.S. behind Johnson & Johnson.

Investors are eagerly awaiting updates on Eli Lilly’s upcoming pipeline launches and recent acquisitions. The company recently acquired Versanis, a privately-held obesity drug maker, for $1.93 billion. Additionally, there is a lawsuit filed by Nektar Therapeutics accusing Eli Lilly of undermining a drug development deal established between the two companies in 2017. Executives are likely to address these matters in the conference call with investors scheduled for 9:00 am ET.

The story is still developing, and updates will be provided as more information becomes available.