Eli Lilly Achieves Quarterly Profit Exceeding Expectations and Raises Full-Year Guidance due to Strong Sales of Zepbound and Mounjaro

Eli Lilly, the largest pharmaceutical company in the U.S., has reported a strong first-quarter profit that exceeded expectations. The company has also raised its full-year guidance due to the success of its blockbuster drugs, Mounjaro and Zepbound.

Eli Lilly now expects adjusted earnings of $13.50 to $14.00 per share for the year, up from its previous guidance of $12.20 to $12.70 per share. Revenue is expected to come in between $42.4 billion and $43.6 billion, a $2 billion increase from the previous range. This positive outlook is partly attributed to the “greater visibility” into the production expansion of Mounjaro, Zepbound, and similar drugs for the rest of the year.

Zepbound, a newly launched weight loss treatment, showed strong sales in its first full quarter on the U.S. market, generating $517.4 million in sales. Despite facing shortages in the U.S., analysts predict that Zepbound could potentially become the biggest drug of all time, with sales exceeding a billion dollars in its first year.

Eli Lilly’s other top-selling diabetes drug, Mounjaro, also performed well in the first quarter, bringing in $1.81 billion in revenue, more than triple the amount from the previous year. However, it fell short of Wall Street’s expectations of $2.11 billion in sales. The company attributed the higher prices of Mounjaro for driving up revenue but noted that decreased use of savings card programs had an impact on sales.

Sales of Eli Lilly’s older diabetes drug Trulicity declined by 26% in the first quarter to $1.46 billion, lower than analysts’ expectations. Supply constraints and competition with other diabetes treatments were cited as factors contributing to the decline in sales.

Despite missing expectations for some of its drugs, Eli Lilly’s overall revenue for the first quarter reached $8.77 billion, a 26% increase compared to the previous year. The company’s breast cancer pill, Verzenio, saw a 40% rise in sales to $1.05 billion due to increased demand. Sales of Jardiance, a tablet for Type 2 diabetes patients, also climbed by 19% to $686.5 million.

Eli Lilly’s CEO, David Ricks, highlighted the company’s commitment to expanding its manufacturing footprint to meet the growing demand for its drugs. Ricks emphasized that Mounjaro and Zepbound are among the most complex medicines ever made by the company.

Investors have responded positively to Eli Lilly’s strong performance, with shares increasing by almost 7% in premarket trading. The company’s stock has risen by 26% this year and nearly 60% in 2023, driven by the high demand for its weight loss and diabetes drugs.

With its continued success and strong financial performance, Eli Lilly is poised to maintain its position as a leading pharmaceutical company in the U.S. As it expands its manufacturing capabilities and addresses supply constraints, the company is well-positioned to meet the growing demand for its innovative drugs in the market.