Eli Lilly Stock Surges as Mounjaro, Zepbound Exceed Expectations
Eli Lilly & Co. reported impressive financial results for the third quarter of the year, exceeding Wall Street’s expectations. The pharmaceutical giant experienced remarkable growth in its diabetes and obesity treatments, particularly Mounjaro and Zepbound. Analyst Carter Gould from Cantor noted that this performance is one of the strongest observed so far this quarter.
Eli Lilly’s Financial Highlights
Mounjaro, a treatment for type 2 diabetes, generated $6.52 billion in sales. This figure represents over a 100% increase compared to the same period last year. Furthermore, sales predictions were surpassed by more than $1 billion.
Meanwhile, Zepbound, Eli Lilly’s weight-loss medication, saw a substantial 185% surge in sales, totaling $3.59 billion. This figure was significantly above the expected $3.5 billion, as indicated by FactSet analysis.
Full-Year Outlook
- Eli Lilly now projects an adjusted profit between $23 to $23.70 per share.
- Total sales are anticipated to be in the range of $63 billion to $63.5 billion.
This updated guidance reflects an increase of $2.25 billion in projected sales compared to previous forecasts. Analyst Carter Gould highlighted that this sales increase is more remarkable than the quarterly earnings report alone, indicating potential for further growth in the fourth quarter.
Stock Performance
Following the earnings release, Eli Lilly’s stock price rose by more than 1%, reaching $824.61. Adjusted earnings soared by 495% to $7.02 per share, considerably exceeding expectations of $5.89. Total sales climbed 54% to $17.6 billion, surpassing forecasts of $16.05 billion.
Other Notable Sales
In addition to Mounjaro and Zepbound, Eli Lilly’s breast cancer treatment, Verzenio, contributed $1.47 billion to its revenue, reflecting a 7% sales increase.
Market Challenges Ahead
Despite the strong quarter, analysts recognize potential challenges for Eli Lilly. Ongoing negotiations surrounding drug pricing with competitors, particularly Novo Nordisk’s Ozempic, may pose risks. Analyst John Boylan expressed that the clarity of these negotiations will significantly influence Eli Lilly’s stock trajectory.
Future Developments
Eli Lilly is expected to provide insights into its developing drug eloralintide during Obesity Week in early November. This new weight-loss drug targets amylin, showcasing the company’s commitment to expanding its portfolio in the obesity treatment market.
Investors may view Eli Lilly’s current stock performance, which trades above key moving averages despite a low IBD Digital Relative Strength Rating, as a potential entry point. Analysts are optimistic about the performance of Eli Lilly in the future, especially amid the evolving landscape of the pharmaceutical industry.
