(Reuters) -Eli Lilly on Tuesday raised its annual forecasts after beating estimates for quarterly profit, driven by strong demand for its new diabetes drug Mounjaro, ahead of a decision on its use as a weight-loss treatment.
The company 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 high 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.
Earlier on Tuesday, rival Novo Nordisk said its obesity drug Wegovy reduced the risk of a major cardiovascular event like a stroke by 20% in overweight or obese people with a history of heart disease in a closely-watched late-stage study.
Lilly's shares, which rose more than 6% following the data, extended gains in premarket trading after the results.
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.
Mounjaro, which is being used off-label as an obesity treatment, generated quarterly sales of $979.7 million, compared with estimates of $743 million.
Lilly has said it expects a regulatory decision on the drug's use in obesity patients late this year.
Eli Lilly now expects annual revenue in range of $33.4 billion to $33.9 billion, compared with its prior range of $31.2 billion to $31.7 billion.
Excluding items, the U.S. drugmaker earned $2.11 per share in the quarter ended June 30, above analysts' average expectations of $1.98.
(Reporting by Bhanvi Satija and Mariam Sunny in Bengaluru; Editing by Sriraj Kalluvila)
