Eli Lilly LLY posted better-than-expected third quarter earnings Thursday thanks to the ongoing surge in sales for its Mounjaro anti-obesity drug that offset a slump in revenues for its legacy diabetes treatment Trulicity.
Shares in the group were pressured in pre-market trading, however, after it slashed its full-year profit forecast thanks in part to a surge in ‘in-process research and development’ costs.
Eli Lilly said adjusted profits for the three months ending in September were pegged at 10 cents per share, down from the $1.98 per share it earned of the same period last year but firmly ahead of the Street consensus forecast of loss of 13 cents per share.
Group revenues, Eli Lilly said, rose 36.8% from last year to $9.5 billion, well ahead of analysts’ forecasts of an $8.954 billion tally.
Trulicity saw sales fell 10% from last year to $1.67 billion while Taltz, its severe plaque psoriasis drug, saw sales rise 9% to $744.2 million. Eli Lilly’s new Mounjaro drug, which targets obesity, produced sales of $1.41 billion.
Looking into current financial year, Eli Lilly said non-GAAP earnings would likely slow to between to between $6.5 and $6.7 per share, down from its prior forecast of $9.70 to $9.90 per share, with revenues in the region of $33.4 billion to $33.9 billion.
“Lilly had another strong quarter in Q3 as Mounjaro and Verzenio continued to gain momentum,” said CEO David Ricks. “Lilly executed on business development priorities in the third quarter, including multiple acquisitions that expand our already robust pipeline.”
“We remain focused on growth and delivering new, innovative medicines that make life better for millions of patients around the globe,” he added.
Eli Lilly shares were marked 2.4% lower in pre-market trading to indicate an opening bell price of $541.00 each.
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