A surging U.S. dollar and increasing generic competition combined for another disappointing outlook for drugmaker Eli Lilly, offsetting stronger-than-expected third quarter earnings.
Eli Lilly & Co. (LLY) – Get Eli Lilly and Company Report posted better-than-expected third quarter earnings Tuesday, but lowered its full-year sales and profit forecasts amid a surging U.S. dollar and increasing competition from generic drugmakers.
Eli Lilly said adjusted profits for the three months ending in September were pegged at $1.98 per share, a 2% increase from the same period last year just ahead of the Street consensus forecast of $1.94. Group revenues, Eli Lilly said, rose 2.55% from last year to $6.942 billion, narrowly topping analysts’ forecasts of a $6.89 billion tally.
Trulicity, the group’s blockbuster diabetes treatment, saw sales rise 16% from last year to $1.85 billion, although they slipped 7.44% from the previous quarter, while Covid therapy revenues were pegged at $386.6 billion. Taltz, its severe plaque psoriasis drug, saw sales rise 15% to $680 million, while its new Mounjaro drug, which targets obesity, produced sales of $187.3 million.
Looking into the final months of the year, Eli Lilly trimmed its guidance for non-GAAP earnings to between $7.70 and $7.85 per share, down from its summer forecast of between $7.90 and $8.05 per share, with revenues in the region of $28.5 billion and $29.0 billion amid a $300 hit from the strength of the U.S. dollar.
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“Lilly delivered another solid quarter with pipeline advancements across the portfolio, continued growth of key products, and impressive uptake from our recently launched medicine, Mounjaro, for type 2 diabetes,” said CEO David Ricks. “With four more launches expected by the end of next year and a potential major new indication for tirzepatide, Lilly continues to make progress for patients with unaddressed medical needs through our significant commitment to invest in R&D, welcome the best talent, and turn breakthroughs in our labs into medicines for people around the world.”
Eli Lilly shares were marked 1.7% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $356.00 each.
Earlier this year, Eli Lilly published final data from a major clinical trial of Jardiance, a diabetes treatment it’s developing with Germany’s Boehringer Ingelheim, which showed notable reductions in “all-cause mortality” and stroke risks in adults with type 2 diabetes in routine care.
Jardiance, which was first approved as a diabetes treatment by the U.S. Food and Drug Administration in 2014, generated around $xxx million in sales for Eli Lilly last quarter, a xxx% increase from the same period last year.
