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Eli Lilly (NYSE:LLY) shares rose ~7% premarket Tuesday after the corporate elevated its full-year outlook above consensus, citing a robust efficiency in its weight reduction merchandise in Q1 2024.
Whereas LLY’s quarterly earnings exceeded estimates, the corporate underperformed in income as gross sales from its diabetes remedy Trulicity slumped ~26% YoY to $1.5B, falling in need of Avenue forecasts of $1.7B, in keeping with Bloomberg knowledge.
In the meantime, gross sales from tirzepatide marketed as Mounjaro for diabetes reached $1.8B, down from $2.2B in This fall 2023 and in comparison with $2.1B within the consensus as demand outstripped provide.
Its sister drug Zepbound, indicated for weight reduction, added $517.4M to the topline, exceeding Wall Avenue’s forecasts, whereas LLY’s breast most cancers remedy Verzenio introduced $1.1B with ~40% YoY progress.
“Lilly’s first quarter efficiency displays strong year-over-year income progress with sturdy gross sales of Mounjaro and Zepbound,” CEO David Ricks remarked forward of the earnings name at 10 a.m. EST.
LLY and its Danish rival Novo Nordisk (NVO) are struggling to fulfill demand for his or her weight-loss medication amid surging demand. “Our progress in addressing a few of the world’s most vital well being care challenges has resulted in elevated demand for our medicines,” Ricks added.
The Indiana-based drugmaker mentioned it continues to extend manufacturing capability for GLP-1 medication equivalent to Mounjaro, and probably the most important manufacturing will increase for the merchandise will happen in H2 2024.
In the meantime, the corporate’s gross margin in Q1 rose 4.3 share factors to 80.9% in comparison with 79.9% within the consensus, and its backside line on a non-GAAP per-share foundation improved 59% to $2.58 forward of expectations.
LLY lifted its outlook for income and non-GAAP earnings per share to $42.4B-$43.6B and 13.50-$14.00, forward of $41.4B and $12.46 within the consensus, respectively.