Eli Lilly surpasses expectations, raises forecasts with Zepbound and Mounjaro sales increasing

• Eli Lilly exceeded expectations with its second-quarter earnings and revenue, and subsequently increased its full-year revenue forecast by $3 billion due to the rise in sales of Mounjaro and Zepbound.
• The drugmaker has revised its full-year adjusted earnings forecast to $16.10 to $16.60 per share, from a previous range of $13.50 to $14 per share.
• The company anticipates revenue for the upcoming year to fall within the range of $45.4 billion to $46.6 billion, representing a growth of $3 billion on either side of the range.

Eli Lilly exceeded expectations with its second-quarter earnings and revenue, and subsequently raised its full-year revenue forecast by $3 billion due to the increase in sales of Mounjaro and Zepbound.

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

The drugmaker has revised its full-year adjusted earnings forecast to $16.10 to $16.60 per share, from a previous range of $13.50 to $14 per share.

The company anticipates revenue for the upcoming year to fall within the range of $45.4 billion to $46.6 billion, representing a growth of $3 billion on either side of the range.

The Food and Drug Administration announced that all doses of Zepbound and Mounjaro are now available in the U.S. after extended shortages. Despite this, demand for these incretin drugs, which mimic hormones produced in the gut to suppress a person's appetite and regulate their blood sugar, has far outstripped supply.

According to a survey of analysts by LSEG, Eli Lilly's second-quarter results differed from Wall Street's expectations.

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

In the second quarter, the pharmaceutical giant recorded a net income of $2.97 billion, which translates to $3.28 per share. This is a significant increase from the profit of $1.76 billion, or $1.95 per share, recorded in the same period last year.

Eli Lilly reported earnings of $3.92 per share for the second quarter of 2024, excluding one-time items and adjustments related to the value of intangible assets.

The company's second-quarter revenue was $11.30 billion, representing a 36% increase from the previous year.

Despite the high monthly price tags, inconsistent insurance coverage, and intermittent supply shortages, Eli Lilly's shares have experienced a more than 30% increase in value this year, following a nearly 60% jump in 2023 due to the demand for their weight loss and diabetes drugs, as well as increased investor interest in their potential as treatments for other health conditions.

Eli Lilly, a U.S.-based pharmaceutical company, has a market cap of over $730 billion, making it the largest in the industry.