Eli Lilly posts Q1 contraction amid hit to COVID sales
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With its Q1 2023 results Thursday, Eli Lilly (NYSE:LLY) missed Street forecasts for revenue as sales of COVID-19 antibody plummeted leading to sharp contractions in top and bottom-line.
Compared to ~$1.5B in Q1 2023 and $187.5M in the consensus, the company reported no revenue for its COVID-19 antibody therapy in the previous quarter.
In 2022, citing a lack of efficacy against emerging Omicron variants, the FDA pulled the emergency authorization for the bebtelovimab monoclonal antibody developed by LLY and AbCellera Biologics (ABCL).
While LLY's topline reached ~7.0B with a ~11% YoY drop exceeding estimates, the revenue excluding COVID-19 antibodies rose ~10% YoY, driven by volume growth from products such as diabetes therapies Mounjaro and Trulicity, which exceeded forecasts to reach $2.0B and $568.5M in revenue, respectively.
Ahead of the earnings, LLY reported Phase 3 data for Mounjaro, indicating up to ~16% weight loss in those with type 2 diabetes who received the GLP-1 receptor agonist in a global trial.
During the quarter, revenue from LLY's insulin therapy Humalog fell ~25% YoY to $460.9M, while anti-diabetic Jardiance brought $577.5M with ~38% YoY growth.
"We also announced important price reductions to make insulin more affordable and accessible for people with diabetes, as well as a significant investment in manufacturing facilities," CEO David Ricks remarked.
In March, LLY spearheaded price reductions for insulin drugs across the industry, announcing a 70% cut to prices of its older versions of products.
Meanwhile, Plaque psoriasis therapy Taltz and breast cancer therapy Verzenio also lagged expectations generating $527M and $750.9M in revenue with ~8% YoY and ~60% YoY growth.
Falling short of Street forecasts, LLY's gross margin narrowed to 76.6% from 73.5% in the prior year period, while its net income on a GAAP and non-GAAP basis plummeted ~29% YoY and 38% YoY to $1.3B and $1.4B, respectively.
However, the company raised its GAAP and non-GAAP earnings guidance by $0.28 and $0.30 to $8.18 – $8.38 and $8.65 – $8.85 per share, respectively, compared to $8.42 per share in the consensus.