Eli Lilly soared past analysts' expectations in its latest earnings reports on the back of its successful weight loss and diabetes drugs.
The company’s fourth-quarter revenue skyrocketed 43% yer-over-year to US$19.29 billion and surpassed expectations of $17.94 billion.
U.S. revenue alone climbed to $12.9 billion, which Eli Lilly said was driven by a 50% increase in volume for its products, including Mounjaro and Zepbound. This was partially offset by a 7% decrease due to the lower realised prices.
This comes after the company made a deal with the U.S. government to expand access to its obesity medicines and reduce patient costs, which is expected to eventually increase the number of prescriptions but hurt sales.
However, the deal will give Eli Lilly a three-year exemption from tariffs.
“We expanded our manufacturing capacity, and through our U.S. government agreement, opened new access to obesity medicines,” Eli Lilly chair and CEO David Ricks said.
Revenue outside the U.S. grew 43% to $6.4 billion, thanks to a 38% increase in volume and 4% favourable impact on foreign exchange rates.
International volume increase was driven primarily by Mounjaro.
“We reached millions more patients—launching Inluriyo, expanding Mounjaro and Kisunla globally, and submitting orforglipron for approval,” Ricks said.
“Entering our 150th year with a deep pipeline and platforms like LillyDirect, we're positioned to reach more patients than ever and expand our global health impact."
Net earnings came in at $6.64 billion and $7.39 per share, surging past last year’s $4.41 billion or $4.88 per share.
On a non-GAAP basis, earnings per share was reported at $7.54, beating market expectations of $6.91 per share.
The pharmaceutical giant said it expects revenue between $80 billion and $83 billion for the full-year and earnings per share of $33.50 and $35. Analysts expect full-year revenue of $77.62 and earnings per share of $33.23.
While Eli Lilly reported a positive fourth quarter and outlook, rival Novo Nordisk warned that it sees sales and sales declining by as much as 13%, after making a similar deal with the Trump administration as Eli Lilly.
Eli Lilly (NYSE: LLY) stocks rose 10.33% to close at $1.107,12 on Wednesday (Thursday AEDT). Its market cap is $1.05 trillion.
