February 23, 2024

Eli Lilly CEO David Ricks on Q1 earnings: This year will be a year of growth and investment

Eli LillyFirst-quarter earnings missed expectations on Thursday, but the drugmaker raised its full-year guidance.

Ahead of the earnings release, the company also reported positive data for its weight-loss drug tezeparatide.

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Eli Lilly shares closed up nearly 4 percent at $390.35 apiece.

The company’s revenue fell 11% from a year earlier, as sales of its Covid-19 antibodies fell by $1.5 billion. Lilly reported revenue of $6.96 billion for the quarter, slightly above analysts’ expectations, but sales were down from $7.81 billion a year earlier.

The company reported adjusted earnings of $1.62 per share, below analysts’ expectations for $1.73 per share for the quarter.

Here’s how the company fared compared to analyst estimates compiled by Refinitiv:

  • Adjusted earnings: $1.62 per share vs. $1.73 per share expected
  • Revenue: $6.96 billion vs. $6.86 billion expected

The company’s net income for the quarter was $1.3 billion, or $1.49 per share, down 29% compared to the first quarter of 2022.

Eli Lilly raised its guidance for the year, largely due to a weaker dollar against major currencies. The company said it expected revenue between $31.2 billion and $31.7 billion, compared with a previous forecast of $30.3 billion to $30.8 billion.

The company raised its full-year adjusted earnings guidance to $8.55 a share from $8.35 to $8.65 to $8.85 a share.

Eli Lilly also released data on its weight-loss drug tirzepatide on Thursday morning ahead of the earnings report. Depending on the dose taken, patients who were overweight and with type 2 diabetes lost an average of 30 pounds to 34 pounds, compared with 7 pounds in the placebo group.

Lilly plans to finalize its application for Food and Drug Administration approval in the coming weeks.

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The FDA approved tirzepatide under the brand name Mounjaro in May 2022 for the treatment of adults with type 2 diabetes. Lilly’s first-quarter Mounjaro sales were about $567 million.

Lilly saw year-over-year revenue growth for several of Lilly’s key products. Sales of Lilly’s weekly injection of type 2 diabetes drug Trulicity hit $1.98 billion in the quarter, up 14% from $1.74 billion a year earlier.

Revenue from Lilly’s breast cancer drug Verzenio jumped 60% to $751 million, compared with $469 million in the first quarter of 2022.

Sales of Jardiance, a pill that lowers blood sugar in people with type 2 diabetes, jumped 38% to $578 million from $419 million a year earlier.

Correction: Lilly’s Mounjaro had sales of about $567 million in the first quarter. An earlier version incorrectly stated this figure.