09:13 AM EDT, 10/30/2024 (MT Newswires) -- Eli Lilly's ( LLY ) third-quarter results rose year over year but missed Wall Street expectations while the drugmaker cut its full-year earnings outlook amid acquisition-related charges.

The company on Wednesday posted adjusted earnings of $1.18 per share for the September quarter, up from $0.10 the year before, but below the Capital IQ-polled consensus of $1.47. Revenue climbed 20% year over year to $11.44 billion, missing the Street's view for $12.12 billion. The stock dropped about 11% in premarket activity.

Eli Lilly ( LLY ) said it incurred acquired in-process research and development charges of $2.83 billion during the quarter, mainly related to its $3.2 billion acquisition of biopharmaceutical company Morphic completed in August. Research and development expenses rose 13% on an annual basis and marketing, selling and administrative costs increased 16% in the third quarter, according to the company.

"Lilly had another strong growth quarter in (the third quarter), with total revenue increasing by 42% after excluding divestiture activity in the same period last year," Chief Executive David Ricks said in a statement. "While the growth of Mounjaro and Zepbound is impressive, we are equally proud of the 17% growth in non-incretin revenue, which includes our oncology, immunology and neuroscience portfolios."

Sales in the US climbed 46% to $7.81 billion buoyed by 35% and 11% gains in volume and prices, respectively. Revenue from non-US markets declined 12% to $3.63 billion, weighed down by a 10% fall in volume.

Revenue from the firm's diabetes treatment Mounjaro soared to $3.11 billion from $1.41 billion in the prior-year quarter. Weight-loss drug Zepbound contributed $1.26 billion to the overall topline. Sales of breast cancer treatment Verzenio inclined 32% while type 2 diabetes drug Trulicity slumped 22%.

For 2024, the company now anticipates adjusted EPS of $13.02 to $13.52 versus prior projections of $16.10 to $16.60. The lowered guidance was driven by the acquired in-process research and development charges in the third quarter, Eli Lilly ( LLY ) said. The Street is looking for normalized EPS of $13.45.

Revenue is expected between $45.4 billion to $46 billion for the ongoing year, reflecting a lower top end from the previous outlook of $46.6 billion. Analysts' current estimate is for $46.22 billion in revenue.

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