09:39 AM EDT, 08/07/2025 (MT Newswires) -- Eli Lilly ( LLY ) raised its full-year outlook and reported stronger-than-expected second-quarter results, but the company's stock dropped on Thursday as data on its investigational weight-loss pill seemed to disappoint investors.

Adjusted earnings are now set to come in between $21.75 and $23 per share for 2025, up from the drugmaker's previous projections of $20.78 to $22.28. Revenue is pegged at $60 billion to $62 billion, compared with the prior forecast of $58 billion to $61 billion. The current consensus on FactSet is for non-GAAP EPS of $21.94 and sales of $60.24 billion.

In a separate statement, Eli Lilly ( LLY ) said patients treated with the highest dose of oral glucagon-like peptide-1 weight loss drug orforglipron lost 12.4% of their body weight, or about 27.3 pounds, after 72 weeks, versus 0.9% with placebo, based on results from a phase 3 trial.

In an emailed client note, Truist Securities said it expects Eli Lilly ( LLY ) to have "first-mover advantage" in the oral market, but highlighted competitive headwinds. Viking Therapeutics' ( VKTX ) therapeutic candidate drug for obesity, VK2735, showed up to 6.8% weight loss at 28 days in a study, according to the brokerage.

Some analysts were expecting orforglipron to drive a weight loss of about 15%, according to CNBC. Some doctors highlighted the number of patients who discontinued treatment of the drug at the highest dose in the trial due to side effects, CNBC said. Reuters also said the trial results disappointed investors.

Treatment discontinuation rates due to adverse events were at 10.3% for 36 mg of orforglipron, while the overall discontinuation rate was 24.4% at the same dose, Eli Lilly ( LLY ) said in its statement.

The company's stock fell 12% in Thursday trading.

"With orforglipron, we're working to transform obesity care by introducing a potential once-daily oral therapy that could support early intervention and long-term disease management," said Kenneth Custer, president of Lilly Cardiometabolic Health. The company plans to submit the drug for regulatory review by the end of the year, Custer added.

For the June quarter, Eli Lilly's ( LLY ) adjusted EPS surged 61% to $6.31, well ahead of the Street's view for $5.60. Revenue climbed 38% to $15.56 billion, surpassing the average analyst estimate on FactSet of $14.7 billion. Sales in the US advanced 38% while non-US markets recorded a 37% jump, with both segments buoyed by volume gains.

Revenue from the firm's diabetes treatment, Mounjaro, soared 68% to nearly $5.2 billion amid robust demand in the US. Sales of weight-loss drug Zepbound spiked to $3.38 billion from $1.24 billion in the 2024 quarter. Breast cancer treatment Verzenio logged revenue growth of 12% to $1.49 billion.

"Lilly delivered another quarter of strong performance, achieving 38% year-over-year revenue growth driven by robust sales of Zepbound and Mounjaro and sustained momentum across our key medicines," Chief Executive David Ricks said in the earnings release. "We also expanded manufacturing capacity to meet increasing demand and invested in key (research and development) initiatives to support our long-term growth."

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