Eli Lilly and Co (NYSE:LLY) shares fell more than 10% at the market open as disappointing late-stage trial data for the company’s oral weight loss drug orforglipron drew focus from strong second quarter earnings and raised full-year guidance.
The trial showed orforglipron users saw an average weight loss of 12.4% over 72 weeks, which was positive and met the primary endpoint.
However, Wall Street had expected the results to match those of competitors like Novo Nordisk’s Wegovy, which showed weight loss of about 14% to 15%.
The company plans to submit the drug to global regulatory agencies by the year-end.
For Q2, Eli Lilly reported a 38% year-over-year jump in revenue to $15.56 billion, attributed to volume growth from the weight loss drugs Zepbound and Mounjaro. This topped Street estimates of $14.78 billion.
Earnings per share of $6.31 marked a 61% increase from the year-ago period, ahead of estimates of $5.60.
"Lilly delivered another quarter of strong performance, achieving 38% year-over-year revenue growth driven by robust sales of Zepbound and Mounjaro and sustained momentum across our key medicines," Eli Lilly CEO David Ricks said in a statement.
The company also raised the midpoint of its full-year revenue guidance by $1.5 billion to be in the range of $60 billion to $62 billion.
EPS is now guided in the range of $21.75 to $23, up from earlier guidance of $20.78 to $22.28.
Shares of Eli Lilly were down 10.6% at $671 shortly after US markets opened on Thursday.