GLP-1s drive Lilly's Q1, but it's reticent on oral launch

Eli Lilly's injectable GLP-1 agonist medicines for obesity and diabetes drove 56% growth in first-quarter sales, but investors may have been disappointed by a lack of information on oral product Foundayo.

The highlight of the financial update – as in previous quarters – was the juggernaut growth of type 2 diabetes therapy Mounjaro and weight-loss drug Zepbound, which are both based on dual GLP-1/GIP agonist tirzepatide. Mounjaro sales rose 125% to $8.66 billion, with Zepbound up 80% to $4.16 billion. Overall revenues came in at a record $19.8 billion.

At the moment, all eyes are on the rollout of oral GLP-1 agonist Foundayo (orforglipron), currently going toe-to-toe in the weight-loss market with Novo Nordisk's Wegovy (semaglutide) pill.

Foundayo was launched on 1st April – after the first quarter – but investors were hoping for some commentary from Lilly in the results on the drug's take-up to see how it is shaping up against first-to-market Wegovy, which was launched in January.

Earlier this week, Lilly's shares weakened on data suggesting Foundayo was lagging oral Wegovy based on prescriptions in its first two weeks, but it has more than made up for the decline in the hours since the results were announced.

The company said it was off to a "strong start," with more than 80% of prescriptions being written for patients who are new to GLP-1 drugs. Targeting treatment-naïve patients is exactly what Lilly and Novo Nordisk are hoping for to build on their current products, which are delivered by weekly injection, in order to grow the market and avoid cannibalising existing sales too much.

Lilly's chief executive, David Ricks, gave more colour on the rollout in an interview with CNBC, in which he said more than 20,000 people have started taking the drug since launch. He also called for patience among shareholders and industry watchers, saying: "This is going to play out over quarters, not days, and I just ask people to take a beat and let us execute."

"Foundayo will meaningfully expand the number of people who can benefit from GLP-1s," said Ricks. The company has also raised its annual revenue guidance by $2 billion, to a range of $82 to $85 billion.

Lilly's results were more than their GLP-1 therapies, and there was also strong growth for immunology therapy Ebglyss (lebrikizumab), up 141% to $145 million, while hitherto slow-burning Alzheimer's disease therapy Kisunla (donanemab) grew more than five-fold to $124 million.

Novo Nordisk is scheduled to release its first-quarter results on 6th May.