Lilly(US:LLY) Hua Er Jie Jian Wen·2025-08-07 12:20Core 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].