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 due to 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 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 loss of $57.4 million, or six cents a share, compared with a profit of $1.45 billion, or $1.61 a share, a year earlier. Excluding one-time items, the company posted a per-share profit of 10 cents.
Revenue jumped 37% to $9.5 billion.
Eli Lilly recorded pre-tax “in-process research and development” charges of $2.98 billion, which are primarily related to a slew of recent buyouts. That compares to charges of $62.4 million in the third quarter of 2022.
The company lowered its 2023 adjusted earnings guidance to a range of $6.50 to $6.70, from a previous range of $9.70 to $9.90 per share.
With a market cap of roughly $526 billion, Eli Lilly is the largest pharmaceutical company based in the U.S. The company’s stock has been on a tear this year, with shares up nearly 52% through Wednesday’s close.┬а
That’s primarily due to the company’s blockbuster diabetes drug Mounjaro and its promising lineup of obesity drugs.┬а
Investors have pinned high hopes on Mounjaro’s potential mega-blockbuster trajectory beyond diabetes, with some research suggesting that it may be even more effective at reducing weight than Novo Nordisk‘s popular Wegovy and Ozempic injections.┬а
Earlier this year, Eli Lilly filed for Food and Drug Administration approval of the injection for chronic weight management.
Eli Lilly shares also got a boost by recent late-stage data from rival Novo Nordisk, which found that its obesity treatment Wegovy reduced the risk of cardiovascular events like heart attack and stroke by 20%. The results suggest that Wegovy and similar obesity and diabetes medications like those in development by Eli Lilly and others could have long-lasting health benefits beyond shedding unwanted pounds.
Eli Lilly will hold an earnings call with investors at 9:00 a.m. ET.
This is a developing story. Check back for details.
