Eli Lilly Raises Its Outlook as Manjaro Passes $10 Billion in a Single Quarter

Keypoints:

• Lilly's third quarter revenue rose 39% to $24.4 billion, well above the roughly $22 billion analysts expected
• Mounjaro sales jumped 65% to $10.7 billion and Zepbound sales rose about 49% to $5.35 billion
• Lilly raised its full-year guidance
• Its weight loss pill orforglipron met its main goal in a large heart safety trial
• FDA approvals this quarter include Mounjaro for heart risk reduction and a new weekly insulin

Eli Lilly just had another blockbuster quarter, and Mounjaro is the reason. On Thursday the drugmaker reported revenue of $24.4 billion for the third quarter, up 39% from a year ago. Analysts had expected about $22.1 billion.

The two big drugs carried the quarter. Mounjaro, the diabetes treatment, brought in $10.7 billion, up 65%. Zepbound, the same medicine sold for weight loss, brought in $5.35 billion, up about 49%. Together they made more than $16 billion in one quarter. Sales outside the US were a major driver. Revenue in China grew 62% and Europe grew 29% after adjusting for currency changes.

The growth comes from volume. Lilly sold 53% more medicine than a year ago, while the average price fell 15%. That is a sign of how the business works right now. Prices are being squeezed, but many more people are taking the drugs. Lilly also noted that the quarter included about $900 million of one-time benefits, mostly milestone payments and changes to rebate estimates. Because of a large deal charge, reported earnings were $7.22 per share, and $7.48 excluding certain items.

Lilly raised its full-year guidance again. Its earlier range, set in the second quarter, was $85 billion to $87 billion in revenue.

The pipeline news was strong too. Lilly's weight loss pill orforglipron, sold under the name Foundayo, was tested in a large heart safety trial called ACHIEVE-4. It met its main goal against insulin glargine, and the company said it showed a 16% lower risk of major heart events. In another trial, the experimental drug retatrutide beat Ozempic 2 mg in adults with type 2 diabetes. The FDA also approved Mounjaro to lower heart risk in adults with type 2 diabetes, along with a new once weekly insulin called Onswik.

There are still questions. Falling prices could keep pressing on profits, and the market for obesity drugs is getting crowded. Lilly also finished buying Merida Biosciences to build its immune disease portfolio. But for now, demand keeps running ahead of everyone's forecasts.