Source: Wall Street See
Eli Lilly and Co's revenue in the second quarter increased by 36% year-on-year, and net income surged by 68% year-on-year, both exceeding market expectations. The company predicts that demand for weight loss drugs will continue to rise throughout the year, and has raised its full-year revenue forecast by $3 billion.
Thanks to the strong sales of weight loss drugs, pharmaceutical giant Eli Lilly and Co. $LLY.US$ In the second quarter, revenue increased by 36% year-on-year, and net profit skyrocketed by 68% year-on-year, both exceeding market expectations. The company predicts that demand for weight loss drugs will continue to rise throughout the year, and has raised its full-year revenue and profit guidance.
On Thursday, Eli Lilly and Co. announced its financial report for the second quarter of 2024, showing:
1) Key Financial Data:
Revenue: in the second quarter, revenue increased by 36% year-on-year to $11.3 billion, which was significantly higher than the market's estimated $9.98 billion. Excluding the $579 million income from the sale of Baqsimi (a nasal powder spray for high blood sugar) equity in the second quarter of 2023, the year-on-year growth rate would be 46%.
Profit: In the second quarter, net profit increased by 68% year-on-year to $2.97 billion, with an adjusted EPS of $3.92 (Non-GAAP), an 86% increase from $2.11 in the same period last year, and higher than the expected $2.6.
The gross margin was 80.8%, an increase of 2.5 percentage points from the same period last year.
2) Performance guidance
Revenue: Eli Lilly expects full-year revenue to be $45.4 billion to $46.6 billion, up from a previous forecast of $42.4 billion to $43.6 billion;
Profit: expected adjusted EPS of $16.1 to $16.6 for the full year, up from a previous forecast of $13.7.
After the financial report was announced, Eli Lilly's pre-market trading in the US surged by nearly 12%.
Weight loss drugs drive revenue growth.
Eli Lilly's second-quarter revenue growth was mainly driven by weight loss drugs, including:
Zepbound's second-quarter revenue was $1.24 billion, exceeding market expectations of $0.8189 billion.
Mounjaro achieved revenue of $3.09 billion, up from only $0.98 billion in the same period last year.
In addition, Eli Lilly's breast cancer treatment drug Verzenio achieved a year-on-year revenue growth of 44% to $1.33 billion in the second quarter.
In the second quarter, Eli Lilly's total drug sales increased by 27% year-on-year. The average selling price of products increased by 10%, mainly driven by Mounjaro.
David A. Ricks, Chairman and CEO, said in the financial report:
Due to our expansion plans, Mounjaro, Zepbound and Verzenio led the company's strong financial performance in the second quarter. It is also exciting that we have seen our drugs for the treatment of cancer, neurological diseases, and autoimmune diseases grow globally.
Eli Lilly pointed out that the growth in sales of the company's weight loss drugs (insulin glucagon-like peptide-1 analogs) was mainly due to capacity expansion and US market channel optimization. Although the supply and demand have stabilized, the rising demand may cause some product supply shortages. In order to meet market demand, Eli Lilly plans to launch new 2.5 mg and 5 mg single-dose bottles of Zepbound in the US market in the next few weeks.
Eli Lilly also stated that its Alzheimer's disease drug Kisunla has been approved in the US, and Jaypirca has been approved in Japan for the treatment of relapsed or refractory T-cell lymphoma, among others.
The company has committed to invest an additional $5.3 billion in a new factory in Indiana to enhance the production of active pharmaceutical ingredients (APIs) for diabetes drug tirzepatide and pipeline drugs.
Editor / jayden