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Cailianshe News, August 8 (Editor: Shi Zhengcheng)On Thursday evening Beijing time, global pharmaceutical leader Eli Lilly soared by more than 10% after opening, and its total market value approached the US$800 billion mark.

(Lilly daily chart, source: tradingview)

The core reason for the rise in stock prices is naturally related toThe GLP-1 drug telportipeptide (Mounjaro for type 2 diabetes, and weight loss drug Zepbound) has driven the company's performance and financial guidance higher across the board.

According to the company's report, this yearSecond quarter revenue of $11.3 billion(up 36% year-on-year), the market expected $9.92 billion; net profit was $2.97 billion (up 68% year-on-year),Adjusted earnings per share: $3.92, far exceeding the expected $2.60.

What makes the market even more excited is thatThe company raised its revenue guidance for the fiscal year for the second time this year, thanks to strength in its weight-loss drug.: The revenue guidance increased by $3 billion on both ends to $45.4 billion to $46.6 billion; the full-year adjusted earnings per share were $16.10 to $16.60, compared with the previous guidance of $13.50 to $14.

(Source: Eli Lilly’s financial guidance)

Jared Holz, a U.S. health care industry analyst at Mizuho Securities, said Eli Lilly's earnings report should alleviate any concerns about its business pace. It is also very rare for a large pharmaceutical company like Eli Lilly to have such a good earnings report.

Thanks to Eli Lilly's financial report showing strong demand for GLP-1 weight loss drugs, Novo Nordisk, which fell sharply yesterday, also rose more than 5% during trading on Thursday.

Running away weight loss pills

It is not difficult to understand that the main increase in Eli Lilly's financial report came from the two telportin injections. As the supply capacity increased, the performance also soared.

After the weight loss drug Zepbound received FDA approval for marketing in November last year,Contributed $1.24 billion in revenue in its second full quarterThe market expected only $920 million. Mounjaro, a diabetes treatment company, had revenue of $3.09 billion in the second quarter.It has tripled compared to the same period last year, which is also much higher than the $2.3 billion expected by analysts.

(Source: Financial Report)

In a horizontal comparison, the main competitor Novo Nordisk's Ozempic achieved sales of 28.88 billion Danish kroner (about 4.218 billion US dollars) in the second quarter; the weight loss drug Wegovy's sales were 11.66 billion Danish kroner (1.703 billion US dollars), both of which were lower than market expectations.

Of course, the quality of the financial report data of weight loss drugs depends entirely on whether the supply chain can keep up with demand.Based on Eli Lilly's production expansion momentum, it will be able to catch up with Novo Nordisk in the weight loss drug market by the end of the year.

In early August, the U.S. FDA updated the drug shortage database showing that all doses of Eli Lilly's Zepbound and Mounjaro were available in the U.S. However, Eli Lilly still warned that the expected increase in demand may lead to "supply shortages" for certain doses of drugs.

Eli Lilly CEO David Ricks said the company has seen incredible demand and hasn't even put much effort into promoting the drug, and he also revealed that the company has built six manufacturing plants and hired thousands of workers to increase production.Eli Lilly expects incretin drug production to be 50% higher in the second half of 2024 than in the same period last year.

In terms of revenue of other drugs, sales of the previous generation GLP-1 drug dulaglutide further declined due to the full launch of telportin. Sales of breast cancer drug Verzenio, hypoglycemic drug empagliflozin, anti-inflammatory drug Taltz and insulin Humalog all increased to varying degrees.