Eli Lilly Reports Earnings Wednesday. It’s All About Zepbound.

All Eyes on Lilly's Second Quarter Numbers

Eli Lilly and Company (LLY) is set to report its second-quarter earnings on Wednesday, July 26, before the market opens. The company is expected to report earnings of $2.04 per share on revenue of $6.73 billion, according to consensus estimates compiled by Bloomberg. This would represent a growth of 14.8% and 2.2%, respectively, compared to the same period last year.

Investors will be closely watching Lilly's results for any signs of progress on its key growth drivers, including its diabetes and immunology drugs. The company's diabetes franchise, which includes products such as Trulicity and Jardiance, has been a major contributor to Lilly's growth in recent years. Meanwhile, the immunology franchise, which includes products such as Taltz and Olumiant, has also shown strong growth potential.

Zepbound: A Key Catalyst for Lilly

One of the most important things to watch for in Lilly's earnings report is any news about Zepbound. Zepbound is a new antibody-drug conjugate that Lilly is developing for the treatment of breast cancer.

Zepbound is designed to target a protein called HER2, which is overexpressed in many breast cancers. HER2 overexpression is associated with a more aggressive form of breast cancer and a worse prognosis. Zepbound is designed to bind to HER2 and deliver a cytotoxic payload to the cancer cells, killing them.

Analysts Optimistic About Zepbound's Potential

Analysts are optimistic about the potential of Zepbound. In a recent note to clients, Leerink Partners analyst George Porges said that Zepbound could be a "blockbuster" drug for Lilly.

Porges noted that Zepbound has shown promising results in clinical trials, and he believes that the drug has the potential to be a first-line treatment for HER2-positive breast cancer. He also believes that Zepbound could be used in combination with other drugs to treat other types of cancer.

Disclaimer

The information provided in this article is for informational purposes only and should not be construed as financial advice. Investors should always consult with a qualified financial advisor before making any investment decisions.