Eli Lilly & Co stock climbed after the drug maker reported first-quarter earnings showing a revenue beat and raised its full-year guidance.
For the quarter ended March 31, 2023, the Indianapolis-based pharma giant reported that revenue declined 11% to $6.96 billion from $7.81 billion, but was well ahead of the $6.864 billion FactSet estimate. The revenue decline was driven by lower volumes as demand for its COVID-related antibody drugs decreased.
The 150-year-old drug maker’s net income came in at $1.345 billion, or $1.49 a share, down from $1.903 billion, or $2.10 a share, in 1Q 2022. Separately, adjusted per-share earnings came to $1.62, below the $1.73 FactSet consensus.
The company said that pipeline progress included positive results in the Tirzepatide Phase 3 SURMOUNT-2 study; FDA approval of an expanded indication for Verzenio; approval of mirikizumab in Japan; and regulatory submissions of tirzepatide for obesity in the EU and lebrikizumab for atopic dermatitis in Japan.
Investors are excited as Eli Lilly’s Tirzepatide, marketed as Mounjaro for diabetes, has shown even higher levels of weight loss than diabetes and weight loss drugs Ozempic and Wegovy.
Tirzepatide is already approved as an injectable prescription medicine for people with Type 2 diabetes.
Eli Lilly released new data to support its aim of fast-track US Food and Drug Administration (FDA) approval, including topline results from another study, called SURMOUNT-2, which shows weight loss of up to 15.7% among people with Type 2 diabetes and obesity.
Investors reacted to the news, sending Eli Lilly shares up 2.8% up to $386.89.
New drugs contributed $573.6 million to revenue in the quarter, led by Mounjaro. Growth products revenue increased 18% to $4.56 billion led by Verzenio, Trulicity, Jardiance and Taltz.
"Core business growth drove solid first-quarter financial results and a strong start for Lilly in 2023, which includes pipeline progress led by positive SURMOUNT-2 data for tirzepatide in obesity," said Lilly CEO David A Ricks in a statement.
"We also announced important price reductions to make insulin more affordable and accessible for people with diabetes, as well as a significant investment in manufacturing facilities. It is an exciting year for Lilly and we look forward to delivering more medicines for unmet health needs."
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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