ETFs in Focus on Eli Lilly's Solid Q2 Earnings, Weak Obesity Data

Core Insights - Eli Lilly and Company (LLY) reported strong second-quarter 2025 results, exceeding estimates on both revenue and earnings, driven by high demand for its weight loss and diabetes medications [1][3][4] - Despite the robust performance, LLY shares fell 14% due to disappointing data from its weight-loss pill, overshadowing the positive financial results and raised full-year outlook [2] Financial Performance - Earnings per share reached $6.31, surpassing the Zacks Consensus Estimate of $5.61, marking a 61% increase year-over-year [3] - Revenues increased by 38% to $15.56 billion, exceeding the estimated $14.75 billion [3] - The sales growth was primarily attributed to strong performances from diabetes drug Mounjaro and weight-loss drug Zepbound [3][4] Drug Sales Breakdown - Mounjaro's sales surged 68% to $5.2 billion, while Verzenio, a breast cancer treatment, saw a 12% increase in sales to $1.5 billion [4] - Zepbound generated approximately $1.24 billion in sales, reflecting a 172% year-over-year growth [4] Outlook and Guidance - Eli Lilly raised its full-year revenue guidance to $62 billion from a previous range of $58-$61 billion and adjusted earnings per share guidance to $21.75-$23.00 from $20.78-$22.28 [4] Clinical Trial Insights - Late-stage trial data for orforglipron, an experimental obesity pill, indicated that patients on the highest dose lost about 12% of their body weight over 72 weeks, compared to a 15% loss with Novo Nordisk's Wegovy [5] - Common side effects included nausea, vomiting, and diarrhea, but no liver toxicity was observed, which is a concern with other oral weight-loss candidates [6] Market Projections - Analysts from Bloomberg Intelligence expressed skepticism regarding Wall Street's $12 billion annual sales projection for orforglipron by 2030, with regulatory approval expected by the end of 2025 and a global launch anticipated in 2026 [7] ETFs with Exposure to Eli Lilly - iShares U.S. Pharmaceuticals ETF (IHE) holds a 20.9% share of Eli Lilly, with $555.5 million in assets under management (AUM) [7] - VanEck Vectors Pharmaceutical ETF (PPH) has Eli Lilly as its top holding at 16.3%, with $498.7 million in AUM [8][9] - Horizon Kinetics Medical ETF (MEDX) features Eli Lilly at 13.3% of its portfolio, with $16.7 million in AUM [10] - Roundhill GLP-1 & Weight Loss ETF (OZEM) includes Eli Lilly at 14.29%, with $31.6 million in AUM [11] - Harbor Health Care ETF (MEDI) has Eli Lilly at 14.5% of its holdings, with $16.6 million in AUM [12]