Eli Lilly blows past estimates, hikes guidance as Zepbound, Mounjaro sales soar

Eli Lilly on Thursday reported second-quarter earnings and revenue that blew past expectations and hiked its full-year revenue outlook by $3 billion as sales of its blockbuster diabetes drug Mounjaro and weight loss injection Zepbound spike.

Shares of Eli Lilly jumped more than 10% in early trading Thursday.

The drugmaker now expects revenue for the year to come in between $45.4 billion and $46.6 billion, an increase of $3 billion at both ends of the range.

The company also raised its full-year adjusted earnings to a range of $16.10 to $16.60, up from a previous guidance of $13.50 to $14 per share.

Eli Lilly said the guidance increase was primarily driven by the strong performance of Mounjaro and Zepbound and comes in part due to "improved clarity" into the company's production expansions and planned launches of Mounjaro outside the U.S.The company said it hit several supply related milestones during the quarter, without providing specific details.

Demand has far outstripped supply for incretin drugs such as Zepbound and Mounjaro, which mimic hormones produced in the gut to suppress a person's appetite and regulate their blood sugar.That has forced Eli Lilly and its rival Novo Nordisk to invest heavily to boost manufacturing.

But Eli Lilly's supply woes may be starting to ease. On Friday, the Food and Drug Administration's drug database said all doses of Zepbound and Mounjaro are available in the U.S. after extended shortages.

Still, the company cautioned that expected increases in demand may result in period "supply tightness" for certain doses of its incretin drugs. 

"We just see unbelievable demand, and we're not even trying that hard to promote this drug," Eli Lilly CEO David Ricks told CNBC in an interview. "What you're