Eli Lilly (LLY) Q2 Earnings Top, Mounjaro, Zepbound Drive View

Core Viewpoint - Eli Lilly and Company reported strong second-quarter 2024 results, with adjusted earnings per share of $3.92, significantly surpassing the Zacks Consensus Estimate of $2.64, and an 86% year-over-year increase in earnings [1] - Revenues reached $11.3 billion, a 36% year-over-year increase, also exceeding the Zacks Consensus Estimate of $9.83 billion [1] Revenue Breakdown - Key growth products generated $5.05 billion, a 3% increase, while new products contributed $4.46 billion, led by Mounjaro and Zepbound [2] - Mounjaro sales were $3.09 billion, up from $1.81 billion in the previous quarter, exceeding the Zacks Consensus Estimate of $2.34 billion [2][3] - Zepbound recorded sales of $1.24 billion, significantly higher than $517.4 million in the previous quarter and beating the model estimate of $700 million [3] Market Performance - U.S. revenues increased by 42% to $7.84 billion, while international revenues rose by 25% to $3.47 billion [2] - Net realized prices increased by 10%, and volumes rose by 27% in the reported quarter [2] Competitive Landscape - Mounjaro and Zepbound face competition from Novo Nordisk's semaglutide products, which also saw significant sales growth [4] - Novo Nordisk's GLP-1 diabetes sales increased by 32% at constant exchange rates, with Ozempic and Wegovy sales rising by 30% and 53%, respectively [4] Guidance Update - The company raised its 2024 revenue guidance to a range of $45.4 billion to $46.6 billion, up from $42.4 billion to $43.6 billion, and increased earnings per share guidance to $16.10 to $16.60 [7] - Strong demand for Mounjaro and Zepbound, along with non-incretin products, contributed to the upward revision of guidance [9] Stock Performance - Following the strong results and guidance increase, Eli Lilly's shares surged by 13% in pre-market trading [9] - The stock has risen 32.5% year-to-date, outperforming the industry average increase of 14.7% [9] Recent Developments - The FDA approved donanemab, branded as Kisunla, for treating early symptomatic Alzheimer's disease, which is expected to generate significant sales [10] - Eli Lilly announced the acquisition of Morphic Therapeutics for approximately $3.2 billion, aimed at expanding its immunology pipeline [11]