Eli Lilly Raises Full-Year Guidance as Q2 Profit Soars 85%
Pharmaceutical giant Eli Lilly has announced a significant jump in its second-quarter profit, leading to an increase in its full-year guidance. The company’s strong sales from its drug pipeline have played a crucial role in this financial success.
According to the latest reports, Eli Lilly’s second-quarter profit has surged by 85% compared to the same period last year. As a result, the company has revised its full-year revenue expectations to be between $33.4 billion and $33.9 billion, surpassing the previous forecast of $31.2 billion to $31.7 billion. Additionally, Eli Lilly has increased its adjusted earnings guidance to a range of $9.70 to $9.90 per share for 2022, up from $8.65 to $8.85.
The news of Eli Lilly’s impressive financial performance has caused a 10% surge in its premarket trading on Tuesday.
The company’s adjusted earnings for the second quarter reached $2.11 per share, exceeding the expected $1.98 per share. Similarly, Eli Lilly recorded $8.31 billion in revenue, surpassing the estimated $7.58 billion.
In terms of net income, Eli Lilly reported $1.76 billion, or $1.95 per share, for the second quarter. This marks a substantial increase from the net income of $952.5 million, or $1.05 per share, during the same period in 2021. Additionally, after accounting for charges associated with intangible assets and losses on securities, the company’s adjusted income for the quarter stood at $1.9 billion, or $2.11 per share.
The remarkable revenue growth for the second quarter was driven by the sales of Eli Lilly’s breast cancer pill, Verzenio, which saw a 57% increase to $926.8 million. Furthermore, newer drugs like Mounjaro, the company’s Type 2 diabetes injection, also played a significant role, contributing $979.7 million in sales for the quarter. Notably, Mounjaro was only approved in the United States in May 2022 and generated just $16 million in sales during the same period last year.
However, Eli Lilly has faced intermittent delays in fulfilling orders of certain Mounjaro doses due to high demand.
Aside from its successful drug sales, the company also generated $579 million by selling the rights to its emergency diabetes treatment, Baqsimi, to Amphastar Pharmaceuticals in April.
Eli Lilly’s stock has experienced substantial growth in recent months, mainly attributed to positive trial results for its Alzheimer’s drug, donanemab, and advancements in its promising obesity drug pipeline. As of now, shares of Eli Lilly have surged over 24% in 2022. With a market value of approximately $431 billion, Eli Lilly is the second-largest pharmaceutical company in the United States, trailing only Johnson & Johnson.
Investors and analysts are eagerly looking forward to the company’s conference call at 9:00 am ET, where Eli Lilly executives are expected to share updates on upcoming pipeline launches and recent acquisitions. This includes the company’s acquisition of Versanis, an obesity drug maker, for $1.93 billion.
During the conference call, executives may also address a lawsuit filed by Nektar Therapeutics, accusing Eli Lilly of undermining a drug development deal established between the two companies in 2017.
This story is still developing, and further updates will be provided as they become available.