Eli Lilly results blow past estimates on strong Zepbound launch, surging Mounjaro revenue

Eli Lilly results blow past estimates on strong Zepbound launch, surging Mounjaro revenue

Eli Lilly brand is proven on one of many firm’s places of work in San Diego, California, U.S., September 17, 2020. 

Mike Blake | Reuters

Eli Lilly on Tuesday reported fourth-quarter revenue and adjusted earnings that topped expectations on the strong launch of its new weight reduction drug, Zepbound, and better costs for its blockbuster diabetes drug, Mounjaro.

Zepbound, which received approval from U.S. regulators in early November, raked in $175.8 million in gross sales for the fourth quarter.

The quarterly results are the primary to incorporate gross sales of Zepbound, which some analysts say may submit greater than a billion {dollars} in gross sales in its first 12 months on the market and ultimately, develop into the biggest drug of all time

Shares of Eli Lilly had been up 5% in premarket buying and selling Tuesday.

Here’s what Eli Lilly reported for the fourth quarter in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by LSEG, previously often known as Refinitiv:

  • Earnings per share: $2.49 adjusted vs. $2.22 anticipated
  • Revenue: $9.35 billion vs. $8.93 billion anticipated

Eli Lilly posted internet revenue of $2.19 billion, or $2.42 a share, for the fourth quarter. That compares with a revenue of $1.94 billion, or $2.14 a share, a year earlier

Excluding one-time gadgets related to the worth of intangible property, amongst different changes, the corporate posted a per-share revenue of $2.49 cents for the fourth quarter of 2023.

The pharmaceutical big booked fourth-quarter revenue of $9.35 billion, up 28% from the identical interval a 12 months in the past.

Higher costs for older medication, notably Mounjaro, helped drive up Eli Lilly’s revenue, the corporate mentioned. Mounjaro booked $2.21 billion in gross sales for the fourth quarter, up from simply $279.2 million in the identical interval a 12 months in the past. 

Analysts had anticipated the drug to usher in $1.73 billion in worldwide gross sales, in accordance with estimates compiled by FactSet.

That improve displays elevated demand but in addition “greater realized costs” attributable to decreased use of Eli Lilly’s financial savings card applications as entry to the drug continued to develop in the course of the quarter, the corporate mentioned. The financial savings card applications goal to assist decrease the out-of-pocket prices for medication like Mounjaro for sufferers.

Shares of Eli Lilly jumped virtually 60% final 12 months as weight reduction medication skyrocketed in reputation regardless of hefty price tags, combined insurance coverage and a handful of unpleasant side effects. With a market cap of roughly $673 billion, Eli Lilly is the most important pharmaceutical firm based mostly within the U.S. 

Eli Lilly will maintain an earnings name with traders at 10:00 a.m. ET on Tuesday. 

Executives will seemingly be requested about whether or not the corporate has made extra progress in addressing the provision points plaguing its weight reduction and diabetes medication. 

There may additionally be questions associated to the timing of the FDA’s determination on Eli Lilly’s experimental Alzheimer’s drug, donanemab, which considerably slowed the development of the memory-robbing illness in sufferers on the early levels of it.

This is breaking information. Please verify again for updates.

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