Eli Lilly has lifted its full-year outlook for the second time this year on the back of another strong quarter, indicating it is far from relinquishing its dominant position as pace setter on the global pharmaceutical stage.
The drugmaker reported revenue of $23bn for Q2, a significant 48% increase on the same quarter from last year. Performance was predictably fuelled by tirzepatide brands Mounjaro and Zepbound, with the type 2 diabetes and obesity drugs accounting for around 64% of revenue. Mounjaro sales spiked 91% to hit $9.9bn, while Zepbound grew 44% to $4.9bn. In a research note, Citi analysts called it an “exceptional quarter”, with revenue exceeding consensus.
The results mark a strong contrast to rival Novo Nordisk, which reported a choppy Q2 amid mixed results for its obesity franchise.
With the company expecting underlying performance to maintain strong momentum, Lilly raised its sales forecast for the year. It now expects revenue to land between $85bn and $87bn, up from the previous range of $82 to $85bn. This original forecast was already raised in Q1, meaning the drugmaker has upped its outlook for the second time in as many quarters.
Not every drug produced eye-watering results. Foundayo (orforglipron), Lilly’s oral glucagon-like peptide-1 receptor agonist (GLP-1RA), generated $98m for the quarter. While still in its very early stages of launch, the pill is lagging significantly behind Novo Nordisk’s oral Wegovy. On its own earnings call, Novo stated that there are already more than 5 million prescriptions for its drug on a cumulative basis. Given that Lilly’s drug was approved after oral Wegovy, analysts expect the gap to narrow, though Citi still called Foundayo’s results “uninspiring”.
With positive momentum, Lilly is ensuring it maintains a diverse portfolio. The company has undertaken a swathe of M&As this year. Recent deals include buying psychedelics specialist AtaiBeckley in July and a trio of vaccine developers in May. Lilly has also outlaid billions of dollars into bolstering its manufacturing footprint in the US and Europe to keep up with medicine demand.
Lilly’s pipeline has strong assets moving forward, too. Retatrutide, a triple glucagon agonist, is at the forefront of late-stage assets. The drug has demonstrated strong weight loss in Phase III trials.
Combined with strong growth, a wide portfolio, and deep pipeline, Citi analysts called Lilly “our favourite among large biopharmas”.
Lilly’s CEO Dave Ricks said: “With our next-generation weight-loss medicine retatrutide and its complete clinical data package in hand, new manufacturing capacity coming online, and exciting new assets entering our pipeline through business development, Lilly's future, after 150 years, has never been brighter.
