(Reuters) -Eli Lilly beat Wall Street estimates for second-quarter profit and raised its full-year earnings forecast on Tuesday, buoyed by strong demand for its new diabetes drugs Mounjaro, ahead of a decision on its use as a weight-loss treatment.
Lilly is leaning on Mounjaro, approved last May in the U.S. for diabetes, to soften the hit from insulin price cuts and competition for cancer therapy Alimta.
Meanwhile, data from a large trial showed that a higher dose of Mounjaro, or tirzepatide, helped people with type 2 diabetes who were also obese or overweight to lose nearly 16% of their body weight.
An approval for Mounjaro to treat obesity could unlock a multi-billion dollar market for the drugmaker.
The company now expects adjusted 2023 earnings of $9.70 to $9.90 per share, compared with its prior forecast of $8.65 to $8.85 per share.
Mounjaro clocked quarterly sales of $979.7 million, compared with estimates of $743 million.
Excluding items, the U.S. drugmaker earned $2.11 per share in the quarter ended June 30, above analysts’ average expectations of $1.98.
Lilly shares rose 10% before the bell.
(Reporting by Bhanvi Satija and Mariam Sunny in Bengaluru; Editing by Sriraj Kalluvila)
