Eli Lilly’s stock surged nearly 10% on Thursday, driven by a strong second-quarter performance that exceeded expectations. The company’s impressive results were fueled by robust demand for its weight-loss drugs, significant advancements in production capacity, and recent FDA approvals.
- Explosive Growth in Weight-Loss Drug Sales
Eli Lilly’s weight-loss drug Mounjaro saw sales soar more than threefold year-over-year, reaching $3.09 billion for the quarter. The company’s other weight-loss treatment, Zepbound, has also made waves, hitting $1 billion in sales in under a year since receiving FDA approval in November 2023. CEO David Ricks highlighted the strong and growing U.S. demand for these products and expressed confidence in the company’s ability to manage supply challenges. - Significant Supply Chain Investments
Eli Lilly is reaping the benefits of its $18 billion investment in manufacturing infrastructure across the U.S. and Europe. A notable highlight is the $5.3 billion commitment to expand an Indiana facility, which will produce key ingredients for Mounjaro and Zepbound. Despite progress, interim CFO Gordon Brooks cautioned that high demand might still lead to occasional supply constraints. - Potential Expanded Benefits of Weight-Loss Drugs
Recent trials suggest that Zepbound may offer additional health benefits beyond weight loss, including reduced risks of severe cardiovascular events and improved management of sleep apnea. Eli Lilly plans to submit new clinical trial data on Zepbound’s cardiovascular benefits to the FDA and expects a decision on its use for sleep apnea before the end of 2024. - New Alzheimer’s Drug Approved
The company also celebrated the FDA approval of Kisunla, a monthly IV infusion drug shown to slow Alzheimer’s progression in clinical trials. Eli Lilly’s Chief Scientific Officer, Dan Skovronsky, noted that Kisunla has quickly been adopted and is broadly covered for Medicare patients.
Eli Lilly’s shares have gained 45% since the start of the year, reflecting strong market confidence in its expanding portfolio and strategic investments.
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