Eli Lilly results top estimates on Mounjaro strength but slashes full-year profit outlook

Eli Lilly on Thursday reported third-quarter revenue and adjusted earnings that topped estimates on strong demand for its diabetes drug Mounjaro, but slashed its full-year profit guidance due to charges primarily related to its recent acquisitions.

Here’s what Eli Lilly reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

• Earnings per share: 10 cents per share adjusted vs. 13 cents loss per share expected
• Revenue: $9.50 billion vs. $8.95 billion expected

For the quarter ended Sept. 30, Eli Lilly posted a loss of $57.4 million, or six cents a share, compared with a profit of $1.45 billion, or $1.61 a share, a year earlier. Excluding one-time items, the company posted a per-share profit of 10 cents.

The pharmaceutical giant generated third-quarter revenue of $9.50 billion, up 37% from the same period a year ago. That increase was primarily driven by growth from Mounjaro and other drugs, including breast cancer pill Verzenio and diabetes medication Jardiance.

Eli Lilly recorded pre-tax “in-process research and development” charges of $2.98 billion, which are primarily related to a slew of recent buyouts, including DICE Therapeutics, Versanis Bio and Emergence Therapeutics AG. That compares to charges of $62.4 million in the third quarter of 2022.

The company lowered its 2023 adjusted earnings guidance to a range of $6.50 to $6.70, from a previous range of $9.70 to $9.90 per share.

But Eli Lilly reiterated its full-year revenue forecast of between $33.4 billion and $33.9 billion. 

With a market cap of roughly $526 billion, Eli Lilly is the largest pharmaceutical company based in the U.S. The company’s stock has been on a tear this year, with shares up nearly 52% through Wednesday’s close. 

Mounjaro, the company’s Type 2 diabetes injection,…