- Eli Lilly announced its first-quarter earnings, which did not meet the expectations, but the company increased its full-year guidance. The company experienced an 11% decrease in revenue in comparison to the same quarter last year, primarily attributed to a $1.5 billion reduction in sales from its Covid-19 antibodies. Despite generating $6.96 billion in revenue for the quarter, slightly exceeding analysts' projections, sales dropped from $7.81 billion in the corresponding quarter of the previous year.
Eli Lilly revised its yearly forecast, citing the weak US dollar against major currencies. Revenue is now estimated to be between $31.2 billion to $31.7 billion, up from $30.3 billion to $30.8 billion. Adjusted earnings per share were also raised to $8.65 to $8.85 from $8.35 to $8.55. In addition, Lilly announced positive results from a study of its weight loss drug tirzepatide, with overweight patients with type 2 diabetes losing an average of 30-34 pounds depending on the dose. The placebo group lost only 7 pounds.
Why it matters
In May 2022, the FDA granted approval for tirzepatide to be sold under the brand name Mounjaro, to manage type 2 diabetes in adults. Lilly, the manufacturer of Mounjaro, reported sales of approximately $587 million for the drug in the first quarter. Lilly saw a year-over-year increase in revenue for various key products. Trulicity, a weekly injection for type 2 diabetes manufactured by Lilly, generated $1.98 billion in sales for the quarter, indicating a 14% rise from the $1.74 billion recorded for the corresponding period in the previous year.