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Eli Lilly and Company (LLY - Free Report) reported first-quarter 2024 adjusted earnings per share (“EPS”) of $2.58, which beat the Zacks Consensus Estimate of $2.53 per share. Earnings rose 59% year over year.
Revenues of $8.77 billion rose 26% year over year. Total revenues, however, missed the Zacks Consensus Estimate of $8.81 billion.
Quarter in Detail
In the reported quarter, net realized prices rose 10%, while volumes rose 16%.
Key growth products (select products launched prior to 2022 like Cyramza, Emgality, Jardiance, Olumiant, Retevmo, Taltz, Trulicity, Tyvyt and Verzenio) grew 2% to $4.66 billion. Eli Lilly’s new products (products launched since 2022 like Ebglyss, Jaypirca, Mounjaro, Omvoh and Zepbound) contributed $2.39 billion to revenues, led by Mounjaro and Zepbound.
While U.S. revenues rose 28% to $5.69 billion, ex-U.S. revenues increased 22% to $3.07 billion.
Among the newer drugs, Lilly’s most popular products are its tirzepatide medicines, diabetes drug Mounjaro and newly launched weight loss medicine, Zepbound.
Mounjaro recorded sales of $1.81 billion during the quarter, lower than $2.21 billion in the previous quarter. The reported sales figure missed the Zacks Consensus Estimate of $1.94 billion as well as our model estimate of $1.86 billion.
While Mounjaro sales benefited from increased demand and higher realized prices due to decreased utilization of savings card programs, supply constraints hurt sales.
Zepbound, which was launched in December 2023, recorded sales of $517.4 million in the quarter compared to $175.8 million in the fourth quarter. Both Mounjaro and Zepbound include the same compound tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA). The GLP-1 segment is an important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity.
However, delays in fulfilling orders amid supply constraints, given enormous demand, hurt volumes of Zepbound and Mounjaro in the quarter.
Lilly’s tirzepatide medicines face strong competition from Novo Nordisk’s (NVO - Free Report) semaglutide. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Despite supply challenges, Wegovy is seeing strong prescription trends and is generating impressive revenues and profits for Novo Nordisk. Novo Nordisk is scheduled to report its first-quarter results on May 2.
Among the growth products, Trulicity generated revenues worth $1.46 billion, down 26% year over due to lower volumes and increased competition in the United States. Volumes were low in the United States as the company faced intermittent delays in fulfilling orders of Trulicity. In international markets, sales declined 13% due to decreased volumes and lower realized prices. Volumes in international markets continued to be affected by the company’s measures to manage strong demand amid tight supply. Sales of Trulicity missed the Zacks Consensus Estimate of $1.57 billion as well as our model estimate of $1.59 billion.
Jardiance sales surged 19% to $686.5 million, driven by increased demand trends. Jardiance missed the Zacks Consensus Estimate of $701.0 million but beat our model estimate of $670.7 million.
Taltz brought in sales of $604.1 million, up 15% year over year, driven by increased demand in the United States and outside. Taltz missed the Zacks Consensus Estimate of $613.0 million but beat our model estimate of $587.8 million.
Verzenio generated sales of $1.05 billion in the reported quarter, up 40% year over year, on increased demand, driven by the launch of the early breast cancer indication. Verzenio sales missed the Zacks Consensus Estimate of $1.11 billion as well as our model estimate of $1.25 billion.
2024 Guidance Upped
The company raised its previously issued sales and earnings guidance for 2024. Lilly expects revenues in the range of $42.4 billion to $43.6 billion compared with the prior expectation of $40.4 billion to $41.6 billion.
The earnings per share guidance was raised from a range of $12.20 to $12.70 to $13.50 to $14.00.
Our Take
Lilly’s first-quarter results were soft as it beat estimates for earnings but missed the same for sales. Strong demand for Mounjaro, Zepbound, Verzenio and Jardiance pulled the top line in the quarter. However, continued supply constraints for incretin-based products like Trulicity, Mounjaro and Zepbound hurt sales. Demand for incretin-based products exceeded supply. Lilly is investing in new advanced manufacturing plants and lines in the United States and Europe to increase supply. Lilly expects production for incretin-based products to increase from the second half of 2024. “Greater visibility” on its production expansion plans and strong demand for Mounjaro and Zepbound pushed Lilly to raise its sales and earnings guidance ranges for 2024 despite mixed first-quarter performance.
Shares rose 5.4% in pre-market trading in response to the increased outlook for 2024.
Lilly’s stock has skyrocketed 81.7% in the past year, compared with an increase of 16.0% for the industry.
Image Source: Zacks Investment Research
Other than Mounjaro and Zepbound, Lilly gained approvals for some other new drugs in 2023, like Omvoh for ulcerative colitis and BTK inhibitor Jaypirca for mantle cell lymphoma and chronic lymphocytic leukemia. Lilly expects its new drugs, Mounjaro, Omvoh, Zepbound, Ebglyss and Jaypirca, to contribute significantly to its top line in 2024, making up for the expected decline in Trulicity sales.Label expansion studies are also going on to allow expansion of the eligible patient population for these drugs in the future.
A key asset in Lilly’s pipeline is donanemab for early Alzheimer’s disease, which is under review in the United States and Europe. Though the drug recently faced a delay in approval, Lilly is optimistic about its potential.
In the past 60 days, the Zacks Consensus Estimate for ANI Pharmaceuticals has improved from $4.12 per share to $4.43 per share. For 2025, earnings estimates have improved from $4.80 per share to $5.04 per share in the past 60 days. In the past year, shares of ANIP have risen 71.8%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, delivering a four-quarter average earnings surprise of 109.06 %.
In the past 60 days, the Zacks Consensus Estimate for Ligand Pharmaceuticals has improved from $4.42 per share to $4.56 per share. For 2025, earnings estimates have improved from $5.11 per share to $5.27 per share in the past 60 days. In the past year, shares of LGND have declined 8.2%
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters. LGND delivered a four-quarter average earnings surprise of 84.81%.
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Eli Lilly (LLY) Q1 Earnings Top, Sales Miss, 2024 View Raised
Eli Lilly and Company (LLY - Free Report) reported first-quarter 2024 adjusted earnings per share (“EPS”) of $2.58, which beat the Zacks Consensus Estimate of $2.53 per share. Earnings rose 59% year over year.
Revenues of $8.77 billion rose 26% year over year. Total revenues, however, missed the Zacks Consensus Estimate of $8.81 billion.
Quarter in Detail
In the reported quarter, net realized prices rose 10%, while volumes rose 16%.
Key growth products (select products launched prior to 2022 like Cyramza, Emgality, Jardiance, Olumiant, Retevmo, Taltz, Trulicity, Tyvyt and Verzenio) grew 2% to $4.66 billion. Eli Lilly’s new products (products launched since 2022 like Ebglyss, Jaypirca, Mounjaro, Omvoh and Zepbound) contributed $2.39 billion to revenues, led by Mounjaro and Zepbound.
While U.S. revenues rose 28% to $5.69 billion, ex-U.S. revenues increased 22% to $3.07 billion.
Among the newer drugs, Lilly’s most popular products are its tirzepatide medicines, diabetes drug Mounjaro and newly launched weight loss medicine, Zepbound.
Mounjaro recorded sales of $1.81 billion during the quarter, lower than $2.21 billion in the previous quarter. The reported sales figure missed the Zacks Consensus Estimate of $1.94 billion as well as our model estimate of $1.86 billion.
While Mounjaro sales benefited from increased demand and higher realized prices due to decreased utilization of savings card programs, supply constraints hurt sales.
Zepbound, which was launched in December 2023, recorded sales of $517.4 million in the quarter compared to $175.8 million in the fourth quarter. Both Mounjaro and Zepbound include the same compound tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA). The GLP-1 segment is an important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity.
However, delays in fulfilling orders amid supply constraints, given enormous demand, hurt volumes of Zepbound and Mounjaro in the quarter.
Lilly’s tirzepatide medicines face strong competition from Novo Nordisk’s (NVO - Free Report) semaglutide. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Despite supply challenges, Wegovy is seeing strong prescription trends and is generating impressive revenues and profits for Novo Nordisk. Novo Nordisk is scheduled to report its first-quarter results on May 2.
Among the growth products, Trulicity generated revenues worth $1.46 billion, down 26% year over due to lower volumes and increased competition in the United States. Volumes were low in the United States as the company faced intermittent delays in fulfilling orders of Trulicity. In international markets, sales declined 13% due to decreased volumes and lower realized prices. Volumes in international markets continued to be affected by the company’s measures to manage strong demand amid tight supply. Sales of Trulicity missed the Zacks Consensus Estimate of $1.57 billion as well as our model estimate of $1.59 billion.
Jardiance sales surged 19% to $686.5 million, driven by increased demand trends. Jardiance missed the Zacks Consensus Estimate of $701.0 million but beat our model estimate of $670.7 million.
Taltz brought in sales of $604.1 million, up 15% year over year, driven by increased demand in the United States and outside. Taltz missed the Zacks Consensus Estimate of $613.0 million but beat our model estimate of $587.8 million.
Verzenio generated sales of $1.05 billion in the reported quarter, up 40% year over year, on increased demand, driven by the launch of the early breast cancer indication. Verzenio sales missed the Zacks Consensus Estimate of $1.11 billion as well as our model estimate of $1.25 billion.
2024 Guidance Upped
The company raised its previously issued sales and earnings guidance for 2024. Lilly expects revenues in the range of $42.4 billion to $43.6 billion compared with the prior expectation of $40.4 billion to $41.6 billion.
The earnings per share guidance was raised from a range of $12.20 to $12.70 to $13.50 to $14.00.
Our Take
Lilly’s first-quarter results were soft as it beat estimates for earnings but missed the same for sales. Strong demand for Mounjaro, Zepbound, Verzenio and Jardiance pulled the top line in the quarter. However, continued supply constraints for incretin-based products like Trulicity, Mounjaro and Zepbound hurt sales. Demand for incretin-based products exceeded supply. Lilly is investing in new advanced manufacturing plants and lines in the United States and Europe to increase supply. Lilly expects production for incretin-based products to increase from the second half of 2024. “Greater visibility” on its production expansion plans and strong demand for Mounjaro and Zepbound pushed Lilly to raise its sales and earnings guidance ranges for 2024 despite mixed first-quarter performance.
Shares rose 5.4% in pre-market trading in response to the increased outlook for 2024.
Lilly’s stock has skyrocketed 81.7% in the past year, compared with an increase of 16.0% for the industry.
Image Source: Zacks Investment Research
Other than Mounjaro and Zepbound, Lilly gained approvals for some other new drugs in 2023, like Omvoh for ulcerative colitis and BTK inhibitor Jaypirca for mantle cell lymphoma and chronic lymphocytic leukemia. Lilly expects its new drugs, Mounjaro, Omvoh, Zepbound, Ebglyss and Jaypirca, to contribute significantly to its top line in 2024, making up for the expected decline in Trulicity sales.Label expansion studies are also going on to allow expansion of the eligible patient population for these drugs in the future.
A key asset in Lilly’s pipeline is donanemab for early Alzheimer’s disease, which is under review in the United States and Europe. Though the drug recently faced a delay in approval, Lilly is optimistic about its potential.
Zacks Rank & Stocks to Consider
Lilly currently has a Zacks Rank #3 (Hold).
Eli Lilly and Company Price and Consensus
Eli Lilly and Company price-consensus-chart | Eli Lilly and Company Quote
Some better-ranked stocks in the healthcare sector are ANI Pharmaceuticals (ANIP - Free Report) and Ligand Pharmaceuticals (LGND - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for ANI Pharmaceuticals has improved from $4.12 per share to $4.43 per share. For 2025, earnings estimates have improved from $4.80 per share to $5.04 per share in the past 60 days. In the past year, shares of ANIP have risen 71.8%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, delivering a four-quarter average earnings surprise of 109.06 %.
In the past 60 days, the Zacks Consensus Estimate for Ligand Pharmaceuticals has improved from $4.42 per share to $4.56 per share. For 2025, earnings estimates have improved from $5.11 per share to $5.27 per share in the past 60 days. In the past year, shares of LGND have declined 8.2%
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters. LGND delivered a four-quarter average earnings surprise of 84.81%.