In a remarkable feat, Eli Lilly’s weight-loss drug Zepbound has surpassed 1 billion in sales for the first time, exceeding Wall Street’s expectations. The American pharmaceutical giant also saw strong demand for its diabetes and weight-loss drug Mounjaro, prompting the company to raise its annual sales forecast by 3 billion to a range of 45.4 billion to 46.6 billion.
Zepbound generated an impressive 1.24 billion in sales during the three months ending in June, marking the highest quarterly returns since its launch in late 2023. Mounjaro also performed exceptionally well, achieving sales of 3.09 billion in the same quarter.
The combined sales of these two products exceeded analysts’ forecasts by more than 750 million, with Eli Lilly expecting the drugs to bring in a total of 15 billion this year. As the world’s most valuable healthcare company, with a market capitalization of around $800 billion, Eli Lilly’s chief executive, David Ricks, attributed the success to “unbelievable demand” for the drugs, despite minimal promotional efforts.
Ricks also noted that pricing for Zepbound remained “pretty stable” during the quarter, with consumer organic demand driving the increased sales as the company shipped more products and brought more supply to the United States. Eli Lilly and its Danish rival, Novo Nordisk, are in a race to expand manufacturing capacity to meet the growing demand for weight-loss treatments.
These drugs have been shown to help patients lose as much as a fifth of their weight, on average. Eli Lilly has committed more than 18 billion to creating new manufacturing facilities and updating existing ones in the United States and Europe, including a 5.3 billion investment in May for a manufacturing site in Indiana dedicated to the production of tirzepatide, the active ingredient in Zepbound.
The company’s chief scientific officer, Daniel Skovronsky, stated that investments made over the last four years are starting to come online, unlocking additional supply. Eli Lilly also plans to launch 2.5mg and 5mg single-dose vials of Zepbound in America shortly.
The strong performance of Eli Lilly’s weight-loss drugs has contributed to a significant boost in the company’s share price, with shares up by 67¾ cents, or 8.8 percent, at $8.40 in afternoon trading in New York. Tags: Eli Lilly, weight-loss drugs, Zepbound, Mounjaro, pharmaceutical industry, obesity treatment.
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