Eli Lilly and Company, Pharmaceutical company headquarters in Alcobendas, Madrid, Spain.
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Eli Lilly on Thursday reported third-quarter revenue and adjusted earnings that topped estimates on strong demand for its diabetes drug Mounjaro, but slashed its full-year profit guidance on account of charges primarily related to its recent acquisitions.
Here’s what Eli Lilly reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly generally known as Refinitiv:
- Earnings per share: 10 cents per share adjusted vs. 13 cents loss per share expected
- Revenue: $9.50 billion vs. $8.95 billion expected
For the quarter ended Sept. 30, Eli Lilly posted a lack of $57.4 million, or 6 cents a share, compared with a profit of $1.45 billion, or $1.61 a share, a yr earlier. Excluding one-time items, the corporate posted a per-share profit of 10 cents.
The pharmaceutical giant generated third-quarter revenue of $9.50 billion, up 37% from the identical period a yr ago. That increase was primarily driven by growth from Mounjaro and other treatments, including breast cancer pill Verzenio and diabetes medication Jardiance, and the sale of one in every of its drug portfolios.
Eli Lilly recorded pretax “in-process research and development” charges of $2.98 billion, that are primarily related to a slew of recent buyouts, including Dice Therapeutics, Versanis Bio and Emergence Therapeutics. That compares with charges of $62.4 million within the third quarter of 2022.
“This is actually the long run value of business development deals now we have done,” Eli Lilly CEO David Ricks said Thursday on CNBC’s “Squawk Box.”
The corporate lowered its 2023 adjusted earnings guidance to a spread of $6.50 to $6.70, from a previous range of $9.70 to $9.90 per share.
But Eli Lilly reiterated its full-year revenue forecast of between $33.4 billion and $33.9 billion.
Shares of Eli Lilly closed greater than 4% higher Thursday.
With a market cap of roughly $551 billion, Eli Lilly is the biggest pharmaceutical company based within the U.S. The corporate’s stock has been on a tear this yr, with shares up nearly 60% through Thursday’s close.
Mounjaro, other drugs
Mounjaro, the corporate’s Type 2 diabetes injection, posted $1.41 billion in sales for the quarter. The drug was first approved within the U.S. in May 2022 and had just $97.3 million in sales within the year-ago period.
Analysts had expected the drug to herald $1.28 billion in worldwide sales, based on estimates compiled by FactSet.
The lion’s share of Mounjaro revenue got here from the U.S., where it raked in $1.28 billion, reflecting increased demand and better realized prices on account of decreased use of savings card programs.
Eli Lilly noted that it experienced “intermittent delays” fulfilling orders of certain Mounjaro doses on account of significant demand, which negatively affected volume.
Eli Lilly executives said on an earnings call that offer constraints have now eased within the U.S., noting that every one dose amounts of Mounjaro are actually listed as “available” on the Food and Drug Administration’s shortage database. But executives noted that offer stays tight outside of the U.S.
Investors have pinned high hopes on Mounjaro’s potential mega-blockbuster potential beyond diabetes, with initial studies suggesting that it could be even more practical at reducing weight than Novo Nordisk‘s popular Wegovy and Ozempic injections. Last month, Eli Lilly filed for FDA approval of the injection for chronic weight management.
Ricks told CNBC that the corporate expects the FDA to make a choice within the fourth quarter.
Revenue growth was also driven by sales of breast cancer pill Verzenio, which rose 68% to $1.04 billion for the quarter. Sales of Jardiance, a tablet that lowers blood sugar in Type 2 diabetes patients, climbed 22% to $700 million for the third quarter.
Eli Lilly also sold the rights to its olanzapine drug portfolio throughout the quarter, which brought in $1.42 billion. Olanzapine, marketed under the brand name Zyprexa, treats psychotic conditions like schizophrenia and bipolar disorder.
Meanwhile, the corporate’s other diabetes medicine, Trulicity, had $1.67 billion in revenue, down 10% from the identical period a yr go.
The corporate also reported no sales from its Covid antibody treatments, compared with $387 million within the second quarter of 2022. The Food and Drug Administration rescinded its approval of the corporate’s antibody bebtelovimab in November.
Notably, Eli Lilly said it now expects the FDA to make a choice on whether to approve its Alzheimer’s treatment, donanemab, in the primary quarter of 2024. The corporate in July applied for full approval of the drug and previously said it expected the agency to resolve by the top of the yr.
Ricks said the FDA asked for a brief extension to its review period to “get through all the information,” so the corporate is not concerned a couple of later decision date.
“It’s more in regards to the procedures taking somewhat longer from their end,” Ricks told CNBC.
Correction: Sales of Jardiance climbed 22% to $700 million for the third quarter. An earlier version misstated the time period.
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