Eli Lilly and Company (NYSE:LLY) revised its annual revenue outlook upward by $2 billion on Tuesday, attributing the increase to robust demand and plans to ramp up production of its weight-loss medication Zepbound and associated diabetes drug Mounjaro, sparking a 7% premarket surge in its shares.
The soaring popularity of Mounjaro and Zepbound, scientifically known as tirzepatide, has propelled the pharmaceutical giant’s market capitalization above $700 billion, surpassing both Tesla Inc. (NASDAQ:TSLA) and Walmart Inc. (NYSE:WMT). Nevertheless, supply constraints persist for these drugs, with most doses expected to remain limited through the second quarter, as per the U.S. Food and Drug Administration’s website.
Lilly stated that its heightened forecast reflects “enhanced clarity regarding the company’s expansion of production for the remainder of the year.” The company continues to augment manufacturing capacity for these drugs, with substantial production increases anticipated in the latter half of the year, despite earlier projections of supply lagging behind demand.
In the short to medium term, the American pharmaceutical firm anticipates sales growth for its weight-loss and diabetes treatments to hinge predominantly on its production and shipping capabilities.
Zepbound generated first-quarter sales of $517.4 million, surpassing analysts’ projections of $418.20 million, according to data from LSEG. Lilly attributed the volume growth of the drug to available supply.
Sales of Mounjaro surged to $1.81 billion from $568.5 million the previous year, driven by robust demand and higher drug prices as patients transitioned away from the company’s savings program. Analysts had anticipated sales of $2.08 billion.
Eli Lilly lifted its annual profit forecast by $1.30 per share to a range of $13.50 to $14 per share. Additionally, the drugmaker revised its annual revenue guidance upward by $2 billion to a range of $42.4 billion to $43.6 billion.
The Indianapolis-headquartered pharmaceutical firm reported an adjusted profit of $2.58 per share, exceeding analysts’ expectations of $2.46 per share.
Shares of Eli Lilly, which have surged over 26% year-to-date, jumped 7% to $788.3 in premarket trading.
