Eli Lilly and Co (NYSE:LLY) reported impressive third-quarter revenue as its diabetes drug Mounjaro exceeded sales expectations.
The blockbuster drug generated quarterly sales of $1.41 billion, marking a 44% increase from the previous quarter and surpassing analysts' estimates of $1.26 billion.
Mounjaro, which recently achieved over a billion dollars in sales for the first time, is currently approved for diabetes treatment and is being used off-label for weight loss. The drug is awaiting a US regulatory decision for its use as a weight-loss treatment by the end of this year.
During 3Q, the company posted revenue of about $9.5 billion, compared with analysts' average expectation of $8.95 billion. Adjusted earnings came in at $0.10 per share compared with consensus estimates of a $0.14 loss.
In addition to Mounjaro, diabetes drug Trulicity saw quarterly sales of $1.67 billion, and the breast cancer treatment Verzenio beat expectations with $1.04 billion in sales.
Despite the strong results, Eli Lilly cut its annual profit outlook due to charges related to recent acquisitions. The company now expects an annual adjusted profit between $6.50 and $6.70 per share, compared to the previous forecast of $9.70 to $9.90 per share.
Eli Lilly and rival Novo Nordisk (NYSE:NVO) are leading the race to capture a share of the estimated $100 billion market for new-generation anti-obesity treatments known as GLP-1 agonists.
The strong performance of Mounjaro has been a significant factor in Lilly's growth this year. Eli Eli Lilly is investing heavily to double its supply capacity for Mounjaro by the end of this year and has initiated a mid-stage clinical study for higher doses of the drug.
Eli Lilly shares were up around 5.7% in New York by midmorning.