Pharmaceutical giant Eli Lilly delivered a stellar second-quarter performance, beating analysts’ expectations and raising its full-year outlook by a whopping $3 billion. The company’s flagship diabetes drug, Mounjaro, and its weight-loss counterpart, Zepbound, were the main drivers of the stellar growth.
Mounjaro and Zepbound, both incretin drugs, have seen unprecedented demand, leading to supply constraints that Eli Lilly is aggressively addressing. The company has invested heavily in expanding manufacturing capacity, resulting in a 50% increase in production of these drugs in the second half of 2024 versus the prior year.
Despite supply challenges, Eli Lilly’s revenues increased 36% year-over-year to $11.3 billion. Earnings per share also rose significantly to $3.92, well above market estimates. Zepbound, in its second full quarter on the market, generated impressive sales of $1.24 billion, beating analysts’ projections. Mounjaro’s performance was equally impressive, with sales tripling to $3.09 billion.
To meet the growing demand for these blockbuster drugs, Eli Lilly is building six new manufacturing facilities and expanding its workforce. The company’s CEO, David Ricks, expressed optimism about the future, noting the continued development of innovative weight-loss treatments to meet the growing market.
While the company has been able to alleviate some supply shortages, Eli Lilly has warned that periodic supply constraints could persist due to overwhelming demand for its incretin drugs. Despite this, the company expects prices to remain relatively stable for the rest of the year.
Eli Lilly’s strong financial performance and positive outlook have pushed its stock price to new highs, cementing its position as a leading player in the pharmaceutical industry.