Eli Lilly raised its full-year revenue guidance to between $91 billion and $92 billion on Thursday, up from a prior forecast of $85 billion to $87 billion, after reporting third-quarter earnings and sales that exceeded analyst expectations. The company attributed the stronger outlook to surging demand for its blockbuster obesity pill Zepbound and diabetes treatment Mounjaro, though sales of its newly launched obesity drug Foundayo fell short of Wall Street forecasts for the quarter.
Mounjaro generated worldwide revenue of $10.72 billion in the third quarter, up 65% from a year earlier, with U.S. sales of roughly $5 billion. Analysts had expected $10.10 billion in worldwide sales and $4.79 billion in U.S. revenue. Zepbound posted $5.35 billion in third-quarter revenue, up 49% year-over-year, surpassing analyst expectations of $5.09 billion globally and $4.99 billion from the U.S. Foundayo, which won U.S. approval in April, recorded $184 million in sales for the quarter, falling below analyst forecasts of around $229 million.
Eli Lilly now projects full-year adjusted earnings between $35 and $36 per share, compared with its previous outlook of $35.50 to $36.50 per share. The company said it raised underlying profit guidance by $4.07 per share at the midpoint but noted this was offset by $4.57 per share in charges tied to deals completed in the quarter. U.S. revenue climbed 34% to $15.1 billion, driven by a 41% increase in prescription volume, primarily from Mounjaro and Zepbound, though offset by a 7% decrease in realized prices.
Eli Lilly controlled 63% of the U.S. obesity and diabetes drug market in the third quarter, compared to rival Novo's 36.6% share, the company said in an earnings presentation. Internationally, Lilly held 58.4% market share against Novo's 41.6%. Chief Executive Officer Dave Ricks told CNBC that only 3% to 10% of eligible patients currently access obesity care in the U.S., describing the potential for market expansion as "dramatic." He noted that Medicare's decision to begin covering GLP-1 drugs for weight loss in July under a temporary pilot program has supported access to these treatments.
For savers and investors, Eli Lilly's stronger-than-expected results and raised outlook reflect expanding demand for obesity and diabetes treatments, though lower drug prices in the U.S. continue to pressure revenue growth. The company is using its substantial profits to pursue acquisitions, including a recent deal to buy Merida Biosciences for developing new autoimmune and allergic disease treatments. Foundayo, which saw total U.S. prescriptions and new patient numbers double from the previous quarter, is expected to win U.S. approval for Type 2 diabetes in the fourth quarter.