Eli Lilly reported stronger-than-expected first-quarter earnings, driven by the success of its diabetes drug Mounjaro and weight loss treatment Zepbound. The company raised its full-year guidance, now expecting adjusted earnings of $13.50 to $14.00 per share and revenue between $42.4 billion and $43.6 billion. Analysts had predicted lower figures, with the results exceeding their expectations. Zepbound, in its first full quarter on the market, reported $517.4 million in sales, despite facing shortages in the U.S. The drug is expected to become a blockbuster, potentially generating over $1 billion in sales in its first year.
Eli Lilly’s first-quarter earnings per share were reported at $2.58, adjusted, surpassing analysts’ expectations of $2.46. Revenue for the quarter was $8.77 billion, slightly below the expected $8.92 billion, but still showing a 26% increase year over year. The company anticipates revenue growth will accelerate in the second half of the year, in line with the increased availability of incretin drugs like Mounjaro and Zepbound, which regulate blood sugar and suppress appetite by mimicking gut hormones.
Shares of Eli Lilly surged nearly 8% in premarket trading following the earnings report, reflecting investor confidence in the company’s performance. Despite challenges such as high drug prices, fluctuating insurance coverage, and supply shortages, Eli Lilly has seen strong demand for its weight loss and diabetes treatments. The company’s market capitalization is around $700 billion, making it the largest U.S.-based pharmaceutical firm. The success of Mounjaro and Zepbound has been a key driver of the company’s stock performance and overall growth.
Although Mounjaro experienced strong revenue growth, it fell short of analysts’ expectations in the first quarter, with sales totaling $1.81 billion compared to the anticipated $2.11 billion. The higher prices for Mounjaro contributed to increased revenue, as the company phased out savings card programs in the U.S. In contrast, sales of Trulicity, another diabetes drug, declined by 26% to $1.46 billion, missing analysts’ estimates. Factors such as supply constraints, competition from other treatments, and lower demand outside the U.S. impacted the performance of both drugs.
Overall, Eli Lilly’s strong earnings report and improved guidance for the full year indicate a positive outlook for the company. The success of Zepbound and the continued growth of Mounjaro are expected to drive future revenue and earnings. Despite challenges in the diabetes drug market and ongoing supply shortages, Eli Lilly remains a key player in the pharmaceutical industry, with a focus on innovative treatments for diabetes, weight loss, and other health conditions. Investors and analysts will likely continue to monitor the company’s performance and product portfolio for future growth opportunities.
