Lilly's GLP-1s race away in Q2, though Foundayo falls short

Eli Lilly has posted another record-breaking quarter of revenue growth, up a massive 48% to $23 billion, with its tirzepatide-based therapies Mounjaro and Zepbound once again delivering ahead of expectations.

Mounjaro for type 2 diabetes and weight-loss therapy Zepbound grew 91% to $9.94 billion and 46% to $4.93 billion, respectively, together accounting for almost two-thirds of its total revenues in the quarter. Both results came in ahead of analyst expectations.

The only smudge in the financial picture was Lilly's recently launched oral GLP-1 agonist Foundayo (orforglipron), which brought in $98 million – below forecasts – and continues to be outsold by Novo Nordisk's first-to-market Wegovy (semaglutide) pill, which made almost $500 million in the same three-month period.

Foundayo aside, Lilly is enjoying phenomenal growth in the market for GLP-1-based diabetes and obesity therapies, with its flagship brands outstripping Novo Nordisk's rival Ozempic and injectable Wegovy products, which grew 3% to $4.85 billion and 1% to just over $3 billion, respectively, according to its just-released second-quarter update.

Recognising its current reliance on dual GIP/GLP-1 agonist tirzepatide, Lilly has embarked on a massive programme of licensing and M&A deals, with no fewer than eight takeovers announced since the start of the year, most recently a $3.8 billion bid for psychedelic medicines developer AtaiBeckley, that collectively are worth upwards of $26 billion and span several therapeutic categories.

Along with agreeing to buy a trio of companies in the infectious diseases arena in May, the pharma group has also signed takeover deals for obesity and diabetes drug developer Kelonia, sleep disorder specialist Centessa Pharma, in vivo CAR-T therapy developer Orna Therapeutics, and immunology-focused Ventyx Bio.

Chief executive David Riocks said that Lilly is "building for the future" with these acquisitions, whilst also bringing forward what could be a worthy successor to tirzepatide with retatrutide, a triple GIP, GLP-1, and glucagon agonist that has generated stellar results in obesity and diabetes.

Lilly recently completed the clinical data package to file retatrutide for obesity, obstructive sleep apnoea, and knee osteoarthritis pain in the first quarter of 2027.

"Lilly's future, after 150 years, has never been brighter," he added.

The company also hiked its financial guidance for the full year, and is now predicting revenues of $85 to $87 billion, up from $82 to $85 billion.

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