Eli Lilly hikes sales outlook, as CEO says there's room for 'dramatic' obesity market expansion

Summary

• Eli Lilly reported third-quarter earnings and revenue that exceeded Wall Street estimates, driven by soaring demand for Zepbound and Mounjaro.
• The company raised its full-year 2026 revenue guidance to between $91 billion and $92 billion, up from a previous range of $85 billion to $87 billion.
• Full-year adjusted earnings per share are now projected between $35 and $36, compared to a prior outlook of $35.50 to $36.50.
• Third-quarter adjusted earnings per share were $7.48, surpassing the expected $6.26, while revenue reached $24.40 billion against an expected $22.61 billion.
• Shares rose approximately 7% following the announcement of the financial results.
• Sales of the newly launched obesity pill Foundayo totaled $184 million, falling short of analyst forecasts of around $229 million.
• Mounjaro worldwide revenue increased 65% to $10.72 billion, with U.S. sales reaching approximately $5 billion.
• Zepbound generated $5.35 billion in revenue for the quarter, a 49% increase from the prior year, with the vast majority of sales occurring in the U.S.
• Total U.S. prescriptions for Foundayo doubled from the previous quarter, with approximately 40% of new patients choosing the oral obesity medicine.
• Lilly expects Foundayo to receive U.S. approval for Type 2 diabetes treatment in the fourth quarter.
• The company holds a 63% share of the U.S. obesity and diabetes drug market, while rival Novo holds 36.6%.
• Seven out of ten U.S. prescriptions for injectable obesity and diabetes drugs in the third quarter were for a Lilly product.
• U.S. revenue climbed 34% to $15.1 billion, driven by a 41% increase in volume that was partially offset by a 7% decrease in realized prices.
• International revenue jumped 47% to $9.3 billion, propelled by a 76% surge in volume despite a 29% drop in realized prices.
• Net income for the quarter was $6.45 billion, or $7.22 per share, which includes $4.57 per share in charges tied to deals.
• A $410 million sales-based milestone payout related to the Jardiance collaboration with Boehringer Ingelheim boosted the quarter's results.
• The company struck an agreement to acquire Merida Biosciences to develop treatments for autoimmune and allergic diseases.
• Medicare began covering GLP-1s for weight loss in July under a temporary pilot program, contributing to expanded U.S. coverage for obesity care.