Eli Lilly Weight-Loss, Diabetes Franchise to Drive Second Quarter Sales Beat, RBC Says

Eli Lilly (LLY) is poised to outpace second-quarter sales consensus estimates as strong volume uptake of its weight-loss drug Zepbound and Mounjaro diabetes treatment drive franchise performance, RBC Capital Markets said in a note Wednesday. The brokerage expects second-quarter revenue of $20.74 billion, ahead of its previous estimate of $20.32 billion and topping the $20.51 billion consensus. Zepbound sales during the quarter are expected to reach $4.81 billion against the $4.57 billion consensus, while Mounjaro revenue is expected to hit $9.34 billion compared with Wall Street estimates of $8.79 billion. The strength in sales of these drugs will offset expected pricing headwinds and lower sales of older products including breast cancer treatment Verzenio, plaque psoriasis treatment Taltz and type 2 diabetes drug Trulicity, according to the note. "(Most favored nation) pricing in Medicare remains in effect throughout 2026, predominantly weighing on late-lifecycle products including Taltz, Trulicity, Verzenio and Forteo," RBC analysts Trung Huynh and Justin Burns said. The firm raised its price target on Lilly's stock to $1,500 from $1,250 due to "continued outperformance".