Eli Lilly Q2 results: its Alzheimer’s drug could be ‘the biggest drug in history’

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on Aug 4, 2022
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  • Eli Lilly reports weaker-than-expected results for its fiscal second quarter.
  • Jim Cramer discussed Eli Lilly Q2 results on CNBC's "Squawk on the Street".
  • Shares of the pharmaceutical giant are up more than 10% for the year.

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Shares of Eli Lilly & Co (NYSE: LLY) are in the red this morning after the pharmaceutical giant reported weaker-than-expected results for its fiscal second quarter.

Key takeaways from Eli Lilly Q2 results

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  • Net income printed at $952.5 million versus the year-ago $1.39 billion
  • Per-share earnings of $1.05 were well below last year’s $1.53
  • Adjusted EPS came in at $1.25, as per the earnings press release
  • Revenue slid 4.0% on a year-over-year basis to $6.488 billion
  • Consensus was $1.70 of adjusted EPS on $6.849 billion in revenue
  • Revenue from COVID-19 antibodies saw an annualised decline of 13%

Trulicity sales remained strong

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The bright spot in Eli Lilly Q2 results was “Trulicity” that brought in $1.911 billion, up from $1.535 billion in the same quarter last year. In the earnings press release, CFO Anat Ashkenazi said:

Excluding revenue from Alimta loss of exclusivity in major markets, the sale of rights to Cialis in China in the base period, and COVID-19 antibodies, Lilly experienced 6% revenue growth in our core business.

Future outlook and Cramer’s remarks

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Eli Lilly reiterated its guidance for $28.8 billion to $29.3 billion in revenue this year. It, however, expects to earn a lower $6.96 to $7.11 in fiscal 2022. In comparison, analysts had called for $7.68 of EPS on$29.126 billion in revenue.

“Foreign exchange” was a headwind for the NYSE-listed firm this quarter. Discussing Eli Lilly Q2 results on CNBC’s “Squawk on the Street”, Jim Cramer said:

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The two things that matter to me are; the weight loss drug is off to a fast start. And the FDA wants to accelerate their Alzheimer’s drug. If the Alzheimer’s drug work, it will be the biggest drug in history.

Wall Street currently has a consensus “overweight” rating on Eli Lilly stock that’s up more than 10% (YTD) despite the ongoing bear market, thanks to the defensive nature of the “healthcare” space.

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