Eli Lilly blows past estimates, hikes guidance as Zepbound, Mounjaro sales soar

Eli Lilly on Thursday reported second-quarter earnings and revenue that blew past expectations and hiked its full-year revenue outlook by $3 billion as sales of its blockbuster diabetes drug Mounjaro and weight loss injection Zepbound spike.

Shares of Eli Lilly jumped more than 9% in premarket trading Thursday.

The drugmaker now expects full-year adjusted earnings of $16.10 to $16.60, up from a previous guidance of $13.50 to $14 per share.

The company also expects revenue for the year to come in between $45.4 billion and $46.6 billion, an increase of $3 billion at both ends of the range.

Eli Lilly said the guidance increase was “primarily driven by the strong performance” of Mounjaro and Zepbound and comes in part due to “improved clarity” into the company’s production expansions and planned launches of Mounjaro outside the U.S. The company said it hit several supply-related milestones during the quarter, without providing specific details.

Demand has far outstripped supply for incretin drugs such as Zepbound and Mounjaro, which mimic hormones produced in the gut to suppress a person’s appetite and regulate their blood sugar. That has forced Eli Lilly and its rival Novo Nordisk to invest heavily to boost manufacturing.

But Eli Lilly’s supply woes may be starting to ease. On Friday, the Food and Drug Administration’s drug database said all doses of Zepbound and Mounjaro are available in the U.S. after extended shortages.

“We just see unbelievable demand, and we’re not even trying that hard to market this drug,” Eli Lilly CEO David Ricks told CNBC in an interview. “What you’re seeing is just consumer organic demand here as we’ve shipped more product, as we bring more buy online, in the United States.” 

Ricks said the company has built six manufacturing plants, some of which are already ramping up, and hired thousands of workers to increase production. 

Here’s what Eli Lilly reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: $3.92 adjusted vs. $2.60 expected
• Revenue: $11.30 billion vs. $9.92 billion expected

The pharmaceutical giant booked net income of $2.97 billion, or $3.28 a share, for the second quarter. That compares with a profit of $1.76 billion, or $1.95 a share, a year earlier. 

Excluding one-time items associated with the value of intangible assets and other adjustments, Eli Lilly posted earnings of $3.92 per share for the second quarter of 2024.

The company posted second-quarter revenue of $11.30 billion, up 36% from the same period a year ago. 

Eli Lilly said sales were largely driven by higher demand for Mounjaro and Zepbound as production increases improved supply in the U.S.

It is Zepbound’s second full quarter on the U.S. market after winning approval from regulators in November. The weekly injection raked in $1.24 billion in sales for the period, which is well above the $922.2 million that analysts expected, according to StreetAccount. 

Meanwhile, Mounjaro took in $3.09 billion in revenue for the second quarter, more than triple the sales it booked during the year-earlier period. Analysts expected $2.39 billion in sales, according to StreetAccount.

Shares of Eli Lilly are up more than 30% this year after jumping almost 60% in 2023 due to the soaring demand for the company’s weight loss and diabetes drugs – and increased investor interest in their potential as treatments for other health conditions. That popularity comes despite their hefty monthly price tags, inconsistent insurance coverage and intermittent supply shortages. 

With a market cap of more than $730 billion, Eli Lilly is the largest pharmaceutical company based in the U.S.