Eli Lilly and Co
(BSP:LILY34)
R$
191.8
+1.82 (+0.96%)
Market Cap: 5.08 Tn
Enterprise Value: 5.27 Tn
PE Ratio: 40.22
PB Ratio: 32.43
GF Score: 97/100 
Q2 2026 Eli Lilly and Co Earnings Call Transcript
Aug 05, 2026 / 02:00PM GMT
Key Points
Positve
- Revenue grew 48% year-over-year in Q2 2026, driven by strong performance across all key products and geographies, leading to a raised full-year guidance.
- The US launch of Foundayo is gaining momentum, with total prescriptions doubling in the last month and new patient starts reaching nearly 1 in 4, supported by expanded commercial access and direct-to-consumer marketing.
- Positive Phase 3 results for retatrutide (TRIUMPH program) showed profound weight loss approaching bariatric surgery levels, with a complete data package for global registrations in obesity, sleep apnea, and knee osteoarthritis pain.
- The Medicare GLP-1 Bridge program launched on July 1, expanding coverage to 20 million eligible Americans and increasing access to obesity medicines by 35%, with early feedback positive and an inflection in prescriptions.
- Strong pipeline progress across therapeutic areas, including FDA approval for EBGLYSS maintenance dosing, EU approval for Jaypirca in CLL, and positive CHMP opinion for once-weekly insulin efsitora alfa.
- International expansion is accelerating, with Mounjaro revenue growing 55% in Europe, 30% in Japan, and 93% in China, and Foundayo receiving approvals in UAE, Saudi Arabia, and Mexico.
- Business development activity added promising assets in vaccines (Curevo, LimmaTech, Vaccine Company) and psychiatry (AtaiBeckley), expanding into emerging therapeutic areas with high unmet need.
- Gross margin improved to 86.3% in Q2, up 1.3 percentage points year-over-year, driven by favorable product mix and improved production costs.
- Non-GAAP EPS of $8.38 beat expectations, and the company raised its full-year EPS guidance to $35.50-$36.50, reflecting strong operational performance.
- The company's incretin portfolio maintains market leadership, with Lilly medicines accounting for 6 out of 10 total prescriptions in the US obesity market and 7 out of 10 injectable prescriptions.
Negative
- US price declined by 9% (excluding one-time adjustments) in Q2, driven by Zepbound and Mounjaro, reflecting increased rebates and discounts, which could pressure future margins.
- The Foundayo US launch has been slower than anticipated, with the company acknowledging a gradual ramp-up and only recent inflection in prescriptions, despite significant promotional investment.
- The company faces ongoing litigation with the FDA over the regulatory pathway for retatrutide, which could delay its submission and approval timeline, with a BLA filing not expected until Q1 2027.
- International growth is increasingly dependent on market expansion rather than new country launches, as the initial bolus of launches has already occurred, potentially slowing growth rates.
- The company expects seasonality effects in Q3 (Europe vacations) and Q4 (US Type 2 diabetes) that could moderate growth in the second half of the year.
- Medical exception usage for Zepbound, which has been a driver of higher net pricing, is expected to decline as CVS returns to formulary, leading to lower prices that will need to be offset by volume growth.
- The company's aggressive M&A activity, including acquisitions in vaccines and psychiatry, carries integration risks and may dilute focus from core therapeutic areas.
- Competitive pressures are emerging, particularly from generic semaglutide in markets like India and Brazil, although early data shows Mounjaro continues to grow, but supply constraints from competitors could shift dynamics.
- The company's guidance implies a deceleration in revenue growth in the second half of 2026, partly due to one-time rebate adjustments and base effects, which may disappoint investors expecting sustained momentum.
- Foundayo's international rollout is still in early stages, with most major market launches not expected until 2027, and reimbursement for Type 2 diabetes will take time, limiting near-term ex-US revenue contribution.
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the Lilly Q2 2026 earnings conference call. (Operator Instructions).
I would now like to turn the conference over to your host, Mike Czapar, Senior Vice President of Investor Relations. Please go ahead.
Mike Czapar
Eli Lilly and Company - Senior Vice President Investor Relations
Good morning. Thank you for joining us for Eli Lilly and Company's Q2 2026 earnings call. I'm Mike Czapar, Senior Vice President of Investor Relations. Joining me on today's call are Dave Ricks, who is Chair and CEO and Lucas Montarce, Chief Financial Officer; Dr. Dan Skovronsky, Chief Scientific and Product Officer; Adrienne Brown, President of Lilly Immunology; Dr. Karoo, President of Lilly Neuroscience; Dr. Yuffa, President of Lilly USA; and Global Customer Capabilities; Jake Van Naarden, President of Lilly Oncology and Head of Business Development; Patrick Jonsson, President of Lilly International; and Ken Custer, President of Lilly Cardiometabolic Health.
During this call, we anticipate making
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