US pharmaceutical giant Eli Lilly & Co., (NYSE: LLY) has released its financial results for the second quarter of 2023, revealing a robust 28% year-on-year (YOY) growth in revenues to USD 8.31 billion. This performance has surpassed expectations, prompting the company to upgrade its guidance for full-year revenues and profits. The new revenue projection is now set to range between USD 33.4-33.9 billion, up from the previous estimate of USD 31.2 to 31.7 billion.
Key Growth Drivers Identified
The significant growth was driven by key products such as the type 2 diabetes (T2D) drug Mounjaro (tirzepatide), CDK4/6 breast cancer drug Verzenio (abemaciclib), diabetes medicine Jardiance (empagliflozin), and the auto-immune disease drug Taltz (ixekizumab). Mounjaro’s sales surged from USD 16 million a year ago to USD 979.7 million, becoming the company’s second-largest earner behind another T2D drug, Trulicity (dulaglutide), which reported a -5% YOY dip in sales to USD 1.8 billion. Jardiance sales increased by 45%, Verzenio by 57%, and Taltz by 16% YOY. Notably, Jardiance, a drug on the market for a decade, saw growth due to new indication approvals in the US for T2D in children aged 10 years and over, and in the EU for the treatment of adults with chronic kidney disease.
China’s Market Contribution to Growth
Lilly experienced a 41% increase in sales in the US market during the quarter, primarily due to Mounjaro. Revenues outside the US rose by 9% YOY. China emerged as a significant growth contributor, with market sales reaching USD 399 million in Q2’23, up from USD 352.1 million in Q2’22. Over the first six months, China sales were USD 771.7 million, up from USD 758.5 million reported in H1’22.
Positive Outlook and Pipeline Developments
CFO Anat Ashkenazi highlighted during the earnings conference call that China’s Q2 revenue figure represented a 20% growth in constant currency terms. The main drivers of growth in China were the Innovent Biologics-partnered PD-1 inhibitor Tyvyt (sintilimab) and breast cancer therapy Verzenio. Following a challenging 2022 for Lilly in China, where full-year sales were down -10% YOY and Q2’22 sales plummeted -32% YOY, Ashkenazi noted, “We are pleased to see our China business return to growth.”
Upcoming Milestones in the Pipeline
Lilly is awaiting US FDA approval for Mounjaro for chronic weight management, using a priority review voucher to expedite the process. In H2’23, the company anticipates first approvals for new molecules, including the Alzheimer’s disease (AD) therapy donanemab and atopic dermatitis drug lebrikizumab, acquired through the purchase of Demira in 2020, which is set to challenge Sanofi’s Dupixent (durvalumab).-Fineline Info & Tech
