Eli LillyLYLYIt posted better-than-expected third-quarter earnings on Thursday thanks to continued growth in sales of its anti-obesity drug Mounjaro, which offset a drop in revenue from its older diabetes treatment Trulicity.
However, the group’s shares came under pressure in pre-market trading after it cut its full-year profit forecast thanks in part to an increase in “in-process research and development” costs.
Eli Lilly said adjusted earnings for the three months ended in September were pegged at 10 cents a share, below the $1.98 a share it earned in the same period last year, but firmly above the company’s forecast. Street consensus for a loss of 13 cents per share.
Group revenue, Eli Lilly said, rose 36.8% from last year to $9.5 billion, well above analysts’ forecasts of $8.954 billion.
Sales of Trulicity fell 10% from last year to $1.67 billion, while Taltz, its severe plaque psoriasis drug, rose 9% to $744.2 million. Eli Lilly’s new obesity drug Mounjaro produced sales of $1.41 billion.
Looking at the current financial year, Eli Lilly said non-GAAP earnings would likely slow to between $6.5 and $6.7 per share, down from its previous forecast of $9.70 to $9.90 per share. with revenue in the region of $33.4 billion to $33.9 billion.
“Lilly had another strong quarter in the third quarter as Mounjaro and Verzenio continued to gain momentum,” said CEO David Ricks. “Lilly executed on its business development priorities in the third quarter, including multiple acquisitions that expand our already strong portfolio.”
“We remain focused on growth and delivering new and innovative medicines that improve the lives of millions of patients around the world,” he added.
Eli Lilly shares fell 2.4% in premarket trading, indicating an opening price of $541.00 each.
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