Eli Lilly Stock Rises as Volume Growth Outruns Falling Prices

Eli Lilly and Company NYSE:LLY rose 5.12% in premarket trading after posting second-quarter revenue of $22.97 billion, up 48% and well clear of the $20.69 billion analyst estimate. Non-GAAP earnings landed at $8.38 a share against a $6.01 estimate. EPS were affected by $3.03 per share in acquired IPR&D charges tied to four completed acquisitions.

Mounjaro did most of the lifting, with revenue up 91% to $9.9 billion. Zepbound added $4.9 billion. Volume grew 60% worldwide while realized prices fell 13%, a trade Lilly appears content to keep making. Outside the U.S., where Mounjaro joined China's national reimbursement list, volume rose 113% and prices dropped 36%.

For full-year revenue, Eli Lilly raised guidance to $85 billion to $87 billion from $82 billion to $85 billion. EPS is guided to $35.50 to $36.50, down from $35.50 to $37.00, because the $3.03 of acquired IPR&D charges outweighed a $2.78 underlying raise at the midpoint.