Eli Lilly generated approximately $14.87 billion in combined second-quarter revenue from Mounjaro and Zepbound as rapidly expanding patient demand more than offset lower realized prices.
Mounjaro revenue surged 91% to $9.94 billion from $5.2 billion during the prior-year quarter.
Zepbound revenue increased 46% to $4.93 billion from $3.38 billion.
Together, the two tirzepatide products represented approximately 64.7% of Lilly’s total quarterly revenue of $22.97 billion.
Mounjaro alone generated roughly 43% of companywide sales.
The two medicines also accounted for nearly 95% of the $15.7 billion generated by Lilly’s designated Key Products portfolio. These percentages are calculated from the disclosed figures.
Lilly’s worldwide revenue increased 48% from $15.56 billion.
The increase was driven by a 60% rise in volume, partially offset by a 13% decline in realized prices.
The result demonstrates the operating leverage created by rapidly expanding demand even as Lilly accepts lower prices to increase access, support reimbursement, and expand internationally.
The price and volume divergence was even more significant outside the United States.
International revenue increased 80% to $8.6 billion as volume surged 113%.
Realized prices outside the U.S. declined 36%, primarily because Mounjaro was added to China’s National Reimbursement Drug List during the first quarter.
International Mounjaro revenue increased 172% to approximately $5.2 billion.
That exceeded the product’s $4.8 billion of U.S. revenue, making markets outside the United States the larger contributor to Mounjaro sales during the quarter.
U.S. Mounjaro revenue still increased 45% because strong demand more than offset lower realized pricing.
Zepbound generated approximately $4.9 billion of U.S. revenue, increasing 44%.
The growth reflected continued demand for obesity treatment, partially offset by lower realized pricing and previously announced reductions in cash-pay prices.
Companywide U.S. revenue increased 33% to $14.4 billion.
Volume grew 37%, while realized prices declined 3%.
However, Lilly said U.S. realized prices would have fallen approximately 9% without favorable adjustments to rebate and discount estimates involving Trulicity, Mounjaro, and Zepbound.
The favorable estimate adjustments therefore reduced the apparent magnitude of the company’s underlying U.S. pricing pressure.
Lilly’s growing reliance on Mounjaro and Zepbound also creates significant product concentration.
The two medicines now generate nearly two-thirds of company revenue, making supply availability, reimbursement, competition, regulatory developments, and continued patient adoption increasingly important to Lilly’s overall financial performance.
The company is investing heavily in manufacturing capacity to support that demand.
Lilly committed an additional $4.5 billion to expand its Indiana manufacturing sites and opened its first dedicated genetic-medicine facility.
The rapid volume growth also supported margin expansion.
Reported gross profit increased 50% to $19.71 billion.
Gross margin expanded 150 basis points to 85.8% as improved production costs and favorable product mix more than offset lower realized prices.
Non-GAAP gross margin reached $19.83 billion, representing 86.3% of revenue.
That margin increased by 130 basis points from the prior-year quarter.
Research and development expenses increased 14% to $3.82 billion as Lilly continued investing in early-stage and late-stage medicines.
Marketing, selling, and administrative expenses rose 25% to $3.43 billion, primarily because of promotional spending associated with ongoing and planned product launches.
Operating income increased 31% to $8.98 billion despite substantial business-development expenses.
Net income rose 25% to $7.1 billion, while diluted EPS increased 26% to $7.94.
Non-GAAP net income increased 32% to $7.49 billion, and non-GAAP EPS rose 33% to $8.38.
Both reported and non-GAAP earnings included $3.03 per share of acquired in-process research and development charges.
The comparable charge was only $0.14 per share during the prior-year quarter.
Total acquired IPR&D expense reached $2.78 billion, compared with $154 million a year earlier.
The charges primarily related to Lilly’s acquisitions of Orna Therapeutics and Ajax Therapeutics.
Lilly also recorded $703 million of impairment, restructuring, and other special charges.
Those expenses primarily reflected accelerated vesting of employee equity awards and acquisition and integration costs associated with Kelonia Therapeutics and Centessa Pharmaceuticals.
The company completed four acquisitions during the second quarter.
After the quarter ended, Lilly completed three additional acquisitions to establish an infectious-disease portfolio and entered an agreement to acquire AtaiBeckley.
Lilly’s stronger commercial results led management to raise full-year revenue guidance to between $85 billion and $87 billion from the previous range of $82 billion to $85 billion.
The midpoint increased by $2.5 billion to $86 billion.
Performance-margin guidance increased to between 49% and 50.5% from 47% to 48.5%.
The midpoint improved by 200 basis points to 49.75%.
Underlying business growth increased Lilly’s non-GAAP EPS outlook by $2.78 at the midpoint.
However, the $3.03-per-share acquired IPR&D charge more than offset that benefit, resulting in an updated EPS range of $35.50 to $36.50.
The prior range was $35.50 to $37, meaning the official midpoint declined by $0.25 despite the substantial operational improvement.
The guidance does not include acquired IPR&D expenses incurred after June 30, creating the potential for additional business-development transactions to reduce reported guidance later in the year.
Lilly is also preparing its next major obesity product.
The company completed the clinical data package for retatrutide covering obesity, obstructive sleep apnea, and knee osteoarthritis pain.
Lilly plans to submit the medicine for U.S. approval during the first quarter of 2027.
The combination of Mounjaro and Zepbound growth, manufacturing expansion, and the advancing retatrutide program positions Lilly to maintain a leading role in diabetes and obesity treatment.
However, the quarter also demonstrates that future revenue growth will increasingly depend on higher volumes overcoming lower prices as access expands across governments, insurers, and international reimbursement systems.
KEY QUOTES:
“Lilly’s momentum continues, as we delivered 48% revenue growth and raised our full-year guidance.”
“With our next-generation weight-loss medicine retatrutide and its complete clinical data package in hand, new manufacturing capacity coming online, and exciting new assets entering our pipeline through business development, Lilly’s future, after 150 years, has never been brighter.”
David A. Ricks, Chair And Chief Executive Officer Of Eli Lilly
