Lilly cuts annual profit view on M&A charges; Mounjaro boosts Q3 sales

Lilly cuts annual profit view on M&A charges; Mounjaro boosts Q3 sales

Nov 2 (Reuters) – Eli Lilly (LLY.N) on Thursday cut its annual profit outlook on charges related to recent acquisitions, and beat quarterly sales estimates driven by strong demand for its new blockbuster diabetes drug, Mounjaro.

Lilly shares have rallied over 60% this year to make it the world’s most valuable healthcare company by market cap as investors bet on Mounjaro’s success.

Mounjaro, currently approved for diabetes and used off-label for weight loss, is expected to be approved for use in obesity patients by the end of this year.

The drug, chemically known as tirzepatide, has been in high demand since its U.S. launch last year.

Lilly and rival Novo Nordisk (NOVOb.CO) are ahead in the race to grab a slice of an estimated $100 billion market for new generation obesity treatments known as GLP-1 agonists.

Lilly is entering a period of earnings growth through 2030 helped by its newer drugs, said Cantor Fitzgerald analyst Louise Chen.

Mounjaro’s third-quarter sales of $1.41 billion, crossed the billion dollar mark for the first time since launch, and beat estimates of $1.31 billion, according to LSEG data.

However, Lilly flagged delays in fulfilling orders of certain Mounjaro doses due to high demand during the quarter.

Shares of the U.S. drugmaker were down marginally in volatile premarket trading.

Quarterly sales of Trulicity came in at $1.67 billion, below analysts’ estimates of $1.86 billion.

The company also said it now expects U.S. regulatory decision on its Alzheimer’s drug in Q1 2024.

Lilly has been bolstering its pipeline through small deals, and had previously disclosed it expects to record a $2.98 billion charge related to its recent acquisitions.

The company now expects annual adjusted profit between $6.50 and $6.70 per share, compared with its prior forecast of $9.70 to $9.90.

It reported quarterly revenue of about $9.50 billion, compared with analysts’ average expectation of $8.95 billion.