Eli Lilly's third-quarter profits surged on soaring demand for its weight-loss treatments, prompting the company to raise its revenue outlook for the second time in three months. Sales of Mounjaro, Lilly's diabetes drug used for weight management, rose 65 percent to $10.7 billion in the three months to the end of September. Revenue from obesity drug Zepbound jumped 49 percent to $5.3 billion.
Net income rose 16 percent year-on-year to $6.4 billion. The Indianapolis-based drugmaker now expects full-year revenue between $91 billion and $92 billion, up from previous guidance of $85 billion to $87 billion. Foundayo, Lilly's new obesity pill, generated $184 million in quarterly sales, below analysts' estimates of $234 million.
Weekly prescriptions for Novo's Wegovy stood at 173,100 compared to 58,014 for Foundayo. Lilly maintains dominance in the multibillion-dollar obesity market, currently selling more injectable treatments, helping propel its valuation to $1 trillion last year. Shares rose nearly 5 percent in early New York trading, extending a rally that made it the ninth-largest S&P 500 company.
The group was one of three US pharmaceutical groups to raise guidance on Thursday. Merck lifted its profit outlook on stronger Keytruda sales, while Bristol Myers Squibb expected higher revenue from new medicines. Lilly is working on next-generation weight-loss jab retatrutide and has struck $31 billion in M&A deals year-to-date across oncology and neuroscience, including the July acquisition of Atai Beckley for up to $3.8 billion.
Deals will slightly weigh on full-year earnings per share guidance, reduced to between $35 and $36 from a maximum $36.5. Expanded US coverage for obesity care helped drive quarterly revenue up nearly 40 percent to $24.4 billion.
Source: Financial Times Companies · Summarized by HeadlinesBriefing