Indianapolis
Fat profits: It’s astonishing to watch Indiana-based pharmaceutical giant Eli Lilly growing its revenue at the rate of a tech start-up, says Robert Cyran on Breakingviews. The group’s top line “bulged” by 28% in the second quarter from a year earlier as it sold almost $1bn-worth of Mounjaro, its diabetes and weight-loss drug. Eli Lilly expects supplies to remain tight for the next few quarters despite plans to ramp up production.
Danish rival Novo Nordisk also has cause to celebrate. Its weight-loss drug Wegovy has been shown to reduce strokes and heart attacks in 20% of overweight patients who have a history of heart disease but no diabetes – much higher than expected. That’s important, because insurers and governments typically won’t pay for weight loss, which is seen as a vanity treatment. So clear evidence that these drugs also come with tangible health benefits “will help loosen purse strings”. Eli Lilly isn’t cheap. On 12.5 times estimated revenue over the next 12 months (before the earnings release this week), it is
