Eli Lilly’s (LLY) stock has closed at an all-time high after the U.S. drugmaker reported that its second-quarter profit rose 85% from a year earlier, bolstered by surging sales of its new diabetes drug Mounjaro.
The company’s share price rose 15% in a single trading session to close at a record high of $521.60 U.S. following the Q2 print. Eli Lilly’s stock has now gained 43% this year.
The boost in the share price came after the prescription drugmaker reported that its Q2 profit rose 85% from the same period a year ago on strong sales of its various medications.
The company recorded net income, or profit, of $1.76 billion U.S., or $1.95 U.S. per share, for the quarter ended June 30. That’s up 85% from net income of $952.5 million U.S., or $1.05 U.S. a share, a year earlier.
Eli Lilly’s revenue in Q2 totaled $8.31 billion U.S., up 28% from the same period of 2022.
Importantly, the company said that sales of Mounjaro, its Type 2 diabetes injection, amounted to $979.7 million U.S., up more than 6,000% from sales of $16 million U.S. a year ago.
Mounjaro’s sales have skyrocketed after the drug was found to be effective at reducing people’s weight.
Last month, Eli Lilly filed for U.S. Food and Drug Administration approval of the injection for weight management and expects a decision from the regulator by year’s end.
However, Mounjaro is already being prescribed by doctors off-label as an obesity treatment.
The strong Q2 financial results, and prospects of Mounjaro receiving FDA approval for weight loss treatments, led Eli Lilly to raise its forward guidance.
The company now expects full-year revenue of between $33.4 billion U.S. and $33.9 billion U.S., up from a previous forecast of $31.2 billion U.S. to $31.7 billion U.S.
Eli Lilly also increased its earnings guidance, lifting it to a range of $9.70 U.S. to $9.90 U.S. per share for the entire year, up from a previous range of $8.65 U.S. to $8.85 U.S.