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Eli Lilly raised its full-year revenue outlook by $5.5 billion at the midpoint Thursday after Mounjaro and Zepbound helped drive a 39% jump in third-quarter sales.
The drugmaker reported revenue of $24.4 billion and now expects 2026 revenue of $91 billion to $92 billion.
The quarter included approximately $900 million of revenue benefits, primarily from $410 million of Jardiance milestones and favorable adjustments to rebate and discount estimates. Lilly said no further Jardiance milestones remain.
Volume growth offsets lower prices
Worldwide volume rose 53%, partly offset by a 15% decline in realized prices. U.S. revenue increased 34% to $15.1 billion, with growth driven by Zepbound and Mounjaro. Revenue outside the U.S. rose 47% to $9.3 billion, led by Mounjaro volume.
U.S. realized prices fell 7%, primarily because of Zepbound, partly offset by rebate and discount estimate adjustments. Outside the U.S., realized prices declined 29%, driven primarily by Mounjaro’s inclusion on China’s National Reimbursement Drug List.
Acquisition charges weigh on earnings
Reported net income rose 16% to $6.5 billion, or $7.22 a share, from $5.6 billion, or $6.21 a share, a year earlier. Non-GAAP earnings per share increased 7% to $7.48 from $7.02.
Both reported and non-GAAP earnings included $4.57 a share of acquired in-process research and development charges, compared with $0.71 a share a year earlier. The company recognized $4.2 billion of those charges in the quarter, primarily related to its AtaiBeckley and Curevo acquisitions.
Lilly raised underlying full-year non-GAAP earnings guidance by $4.07 a share at the midpoint. That improvement was more than offset by the $4.57 a share of third-quarter acquisition charges, leaving an updated non-GAAP earnings range of $35 to $36 a share.
Research and development spending rose 23% to $4.2 billion, while marketing, selling and administrative expenses increased 14% to $3.1 billion. Lilly said it was continuing to invest in its drug portfolio and support ongoing and planned launches.
JBizNews Desk | Indianapolis
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