Financial Data and Key Metrics Changes - Revenue grew 38% compared to Q2 2024, driven by key products including Evglis, Jaypirca, Kisunla, Mounjaro, Omvoh, Verzenio, and Zepbound [9][19] - Gross margin as a percentage of revenue was 85% in Q2, an increase of three percentage points year-over-year, primarily due to improved production costs and a favorable product mix [19] - Earnings per share increased 61% to $6.31, including a negative impact of $0.14 from acquired IPR&D charges [21] Business Line Data and Key Metrics Changes - Mounjaro posted $5.2 billion in global sales and became the U.S. market leader in total prescriptions within the type 2 diabetes incretin market [28][29] - Zepbound contributed significantly to sales, with over 1 million TRX in Q2, and accounted for approximately 20% of total U.S. prescriptions [32][86] - Eplis showed strong performance in atopic dermatitis, with total prescriptions nearly doubling since Q1 [23] Market Data and Key Metrics Changes - U.S. revenue increased 38%, driven by strong volume growth of Zepbound and Mounjaro, partially offset by an 8% decline in price [22] - Revenue in Europe grew 77% in constant currency, reflecting strong uptake of Mounjaro [22] - Japan revenue grew 7% in constant currency, driven by Mounjaro and Eplis, while China saw a 19% increase in revenue [22] Company Strategy and Development Direction - The company aims to submit orforglipron for regulatory approval globally to address the obesity challenge [8] - Continued investment in R&D is emphasized, with a focus on expanding the pipeline and increasing manufacturing capacity [11][14] - The company is committed to addressing drug pricing reform while ensuring patient access to medications [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and growth outlook for the company, raising revenue and earnings guidance for 2025 [12][35] - The management highlighted the importance of addressing patient safety concerns related to compounding and emphasized the need for regulatory action [72] - The company anticipates continued growth in the incretin market, with a focus on maintaining pricing strategies that reflect the value of their products [75] Other Important Information - The company announced the acquisition of SiteOne Therapeutics and Verve Therapeutics, expanding its portfolio in pain management and genetic medicines [14][54] - Manufacturing capacity has increased significantly, producing more than 1.6 times the amount of saleable incretin doses compared to 2024 [14][37] Q&A Session Summary Question: Context for orforglipron's weight loss profile compared to Wegovy - Management highlighted the efficacy of orforglipron, noting significant weight loss and improvements in key biomarkers, emphasizing its potential as a convenient oral option [61][66] Question: Pricing environment and compounding concerns - Management discussed the importance of addressing patient safety regarding compounding and indicated expectations for single-digit net pricing erosion while maintaining value [69][75] Question: Discontinuation rates and GI adverse events for orforglipron - Management confirmed that GI side effects were consistent with GLP-1 agonists, typically decreasing over time, with no significant differences noted [78][80] Question: Impact of Canadian generics on the market - Management indicated that the U.S. market remains strong, with continued growth in prescriptions despite potential competition from generics [83][86] Question: Evolution of U.S. employer coverage for anti-obesity medicines - Management confirmed that employer coverage has been steady, with ongoing efforts to improve access and simplify benefit designs [90][94] Question: Expectations for ATTAIN-two Phase III data - Management expressed confidence in the upcoming ATTAIN-two results, anticipating similar positive outcomes as seen in previous trials [97][100] Question: Differences in side effect profiles between studies - Management noted that side effect profiles can vary between populations, but overall confidence in the GLP-1 monotherapy profile remains high [103][106] Question: Gender split in the orforglipron study - Management reported a balanced gender split in the study population, with no notable differences impacting the results [111]

Group 1: Earnings Performance - Eli Lilly reported quarterly earnings of $6.31 per share, exceeding the Zacks Consensus Estimate of $5.61 per share, and up from $3.92 per share a year ago, representing an earnings surprise of +12.48% [1] - The company posted revenues of $15.56 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.48%, compared to year-ago revenues of $11.3 billion [2] - Over the last four quarters, Eli Lilly has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Eli Lilly shares have declined approximately 3.3% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $6.22 on revenues of $15.74 billion, and for the current fiscal year, it is $22.05 on revenues of $60.43 billion [7] Group 3: Industry Context - The Large Cap Pharmaceuticals industry, to which Eli Lilly belongs, is currently in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Group 1 - Novo Nordisk's Wegovy and Eli Lilly's Mounjaro saw sales in India double in July compared to June, indicating strong demand for these obesity treatments [1] - Wegovy's sales reached 5,000 units with a revenue of 70 million INR (approximately 797,000 USD), while Mounjaro's sales hit 157,000 units with a revenue of 470 million INR [1] - Novo Nordisk's Q2 sales were 76.857 billion DKK, a 13% year-over-year increase, with a net profit of 26.503 billion DKK, up 32% [2] Group 2 - Eli Lilly reported Q2 revenue of 15.6 billion USD, a year-over-year increase of approximately 38%, but faced challenges with its oral weight loss drug underperforming expectations [2] - Novo Nordisk is advancing its research on Amycretin for weight management and has initiated the REDEFINE11 study to explore CagriSema's potential [2] - As of the latest trading, Novo Nordisk's stock rose by 8% in pre-market, while Eli Lilly's stock fell by 7.8% [3]

Core Viewpoint - Eli Lilly reported strong Q2 earnings with revenue of $15.56 billion, a 38% year-over-year increase, exceeding market expectations of $14.7 billion, and raised its full-year revenue guidance to $60-62 billion [1][2][10] Financial Performance - Q2 revenue reached $15.56 billion, driven by sales growth of Zepbound and Mounjaro [2] - Reported EPS was $6.29, a 92% increase year-over-year, while non-GAAP EPS was $6.31, up 61% from the previous year [3][2] - Gross margin improved to 84.3%, up 3.5 percentage points due to better production costs and product mix [2] Key Product Developments - Mounjaro generated global revenue of $5.2 billion, a 68% increase, with U.S. sales of $3.3 billion and international sales of $1.9 billion [8][9] - Zepbound saw U.S. revenue of $3.38 billion, a 172% increase, although facing pricing pressure [8][9] - Verzenio revenue was $1.49 billion, reflecting a 12% year-over-year growth [8] Market Dynamics - Despite strong revenue growth, pricing pressures were evident, contributing to a 6% decline in growth due to an 8% price drop in the U.S. market [9] - The competitive landscape for GLP-1 drugs is changing, with increased pressure from insurance companies and government programs [9] R&D and Future Outlook - R&D expenses rose to $3.34 billion, a 23% increase, indicating continued high investment in pipeline development [10] - The company raised its 2025 revenue guidance by $1.5 billion to a range of $60-62 billion, reflecting management's confidence in business prospects [10] Orforglipron Clinical Trial Results - The experimental weight loss pill orforglipron showed only an 11% weight reduction in Phase III trials, below Wall Street expectations, leading to a significant drop in stock price [6][11] - The drug is expected to provide a cheaper oral option in the weight loss market projected to grow to $95 billion by 2030 [11][12] - Common side effects include nausea and vomiting, similar to existing GLP-1 drugs, but orforglipron did not cause liver issues, a concern with other weight loss drugs [11][12]

Financial Performance - Total revenue reached $15.6 billion, a 38% increase compared to Q2 2024[12] - Key product revenue grew by 80% to $10.4 billion[12] - Non-GAAP earnings per share (EPS) increased by 61% to $6.31[12] - The company raised the midpoint of its revenue guidance by $1.5 billion for the full year[10] Product Performance - Lilly's U.S. incretin analogs market share increased to 57.0% of total prescriptions, with the market growing 41% year-over-year[10] - Mounjaro U.S. sales were $3.3 billion and international sales were $1.9 billion[65] - Zepbound U.S. sales were $3.4 billion and international sales were $1.5 million[68] - Verzenio U.S. sales increased 8% and international sales increased 19%[71] - Jaypirca Q2 2025 sales reached $123 million, with TRx increasing 85% compared to Q2 2024[25] Clinical Development - Orforglipron delivered weight loss of more than 27 lbs (12.4%) in ATTAIN-1[16] - Mounjaro demonstrated cardiovascular protection in SURPASS-CVOT, showing an 8% lower rate of MACE-3 events compared to Trulicity[16, 43]

Core Insights - Eli Lilly's experimental oral weight loss drug orforglipron showed a weight reduction of approximately 11%, which fell short of Wall Street expectations that anticipated results comparable to Novo Nordisk's Wegovy [1] - Following the announcement, Eli Lilly's stock dropped 7% in pre-market trading, while Novo Nordisk's stock rose by 7% [1] - Eli Lilly reported better-than-expected Q2 earnings and raised its full-year revenue and profit guidance [2] Financial Performance - In Q2, Eli Lilly achieved revenue of $15.557 billion, a year-over-year increase of approximately 38% [2][3] - The obesity drug portfolio, primarily driven by diabetes drug Mounjaro and weight loss therapy Zepbound, generated over $8 billion in revenue due to strong demand [2] - Mounjaro generated approximately $5.199 billion in revenue, up 68% year-over-year, while Zepbound's revenue reached about $3.381 billion, a 172% increase [5] Earnings and Guidance - Eli Lilly's adjusted gross margin improved from 82% to 85% year-over-year, with non-GAAP earnings per share increasing by 61% to $6.31, exceeding market expectations by $0.72 [4] - The company raised its adjusted earnings per share guidance for the year to between $21.75 and $23, up from a previous range of $20.78 to $22.28 [6] - Eli Lilly also increased its 2025 revenue forecast by $1.5 billion to a range of $60 billion to $62 billion, aligning closely with market expectations [6] Market Competition - Eli Lilly and Novo Nordisk are competing in the rapidly growing GLP-1 agonist market, which is expected to exceed $150 billion in revenue over the next decade [6] - The oral weight loss drug market is projected to grow to $95 billion by 2030, with Eli Lilly and others facing challenges in developing effective oral medications [7] - Eli Lilly plans to submit the results of its orforglipron study to regulatory authorities by the end of the year, with results expected to be presented at a medical conference in September [7][8] Future Outlook - Eli Lilly anticipates significant growth in demand for its weight loss drug Zepbound and aims to capture more market share from Novo Nordisk's Wegovy [6] - The company is making substantial investments to meet expected demand, including reserving at least $600 million worth of orforglipron and increasing production of necessary active ingredients [8]

Core Viewpoint - Eli Lilly reported strong Q2 earnings but faced a significant stock price drop due to disappointing results from its experimental weight loss drug, orforglipron, which fell short of market expectations [1][8]. Financial Performance - Q2 revenue reached $15.56 billion, a 38% year-over-year increase, surpassing market expectations of $14.7 billion, driven by sales growth of Zepbound and Mounjaro [1][6]. - Reported EPS was $6.29, up 92% year-over-year; non-GAAP EPS was $6.31, a 61% increase from the previous year [1]. - Gross margin improved to 84.3%, up 3.5 percentage points, benefiting from lower production costs and optimized product mix [1]. - The company raised its full-year revenue guidance to $60-62 billion from a previous estimate of $58-61 billion [1][7]. Product Performance - Mounjaro generated global revenue of $5.2 billion, a 68% increase; U.S. sales were $3.3 billion, while international sales reached $1.9 billion [2][6]. - Zepbound's U.S. revenue was $3.38 billion, a staggering 172% increase, although it faced pricing pressure [2][6]. - Verzenio revenue was $1.49 billion, reflecting a stable 12% growth [2][4]. Market Dynamics - Despite strong revenue growth, pricing pressures reduced growth by 6 percentage points, with an 8% price decline in the U.S. market [6]. - The competitive landscape for GLP-1 drugs is evolving, with increased pricing negotiations from insurers and government programs [6]. R&D and Future Outlook - R&D expenses rose to $3.34 billion, a 23% increase, indicating continued high investment in pipeline development [6]. - The company plans to submit orforglipron's trial results for regulatory approval by the end of the year, with expectations for a market launch next year [8][9].

Drug Development & Clinical Trials - Eli Lilly's oral weight loss drug trial results met internal expectations, despite market disappointment, with an average weight loss of 27 pounds [2][3] - The company plans to submit the oral weight loss drug to regulators by the end of the year, anticipating potential approvals around the same time next year [4] - Safety risks associated with orforglipron have been largely addressed, paving the way for its potential as a mass-market obesity treatment [8][9] - Dropout rates in the study were comparable to placebo, alleviating concerns about the drug's tolerability [12][16] - Seven phase three studies are underway for the medicine [14] Market Position & Financial Performance - The pharmaceutical sector's price-to-earnings multiples have compressed in the last year, affecting stock prices across the industry [6] - Eli Lilly's sales increased by 38% year-over-year in the second quarter [7] - Tirzepatide (Mounjaro and Zepbound) is projected to become the best-selling drug in the industry within its third year on the market [7] - The company emphasizes its focus on increasing value for patients and investors [7] Obesity Market & Treatment Landscape - The current obesity treatment market only addresses approximately 2-3% of the global population [9] - There are an estimated 1 billion people worldwide who are overweight or obese, highlighting the significant market potential for effective treatments [9]

news uh that we've I guess been waiting for from Eli Liy. Got a look at the stock. Uh although we'll show you that Angelica Peeles that's here and joins us now, but uh as you're talking, we should take a quick look at the uh early morning action in the shares.But take it away. >> Yeah, that early morning action not good. The stock down about 6% right now and that's after we got this highly anticipated data on its obesity pill and clearly there's some disappointment.So let's go through the numbers. people lo ...

An experimental weight-loss pill from Eli Lilly helped people lose up to about 12% of their body weight, a new study found, potentially clearing the way for the drug to be on the market next year https://t.co/eihfsfp4I8 ...