Eli Lilly, AbbVie and Merck shares rose on October 14, 2026, while the S&P 500 declined following September’s inflation report, according to Barron’s. The gains drew attention to drugmakers whose second-quarter results showed different growth rates and substantial dependence on a small number of medicines.
The U.S. Bureau of Labor Statistics reported that consumer prices increased 0.6% in September on a seasonally adjusted basis. Annual inflation reached 3.7%, up from 3.4% in August. Reuters reported that the figures revived expectations of a possible Federal Reserve rate increase in October.
Barron’s also described an earlier rotation away from artificial intelligence stocks toward healthcare, industrials and financials in June.
Second-quarter growth centers on leading treatments
Lilly, AbbVie and Merck reported the following worldwide revenue figures for the second quarter of 2026. Growth rates compare with the same quarter of 2025.
| Company | Revenue | Reported revenue growth |
|---|---|---|
| Eli Lilly | $23.0 billion | 48% |
| AbbVie | $16.99 billion | 10.2% |
| Merck | $16.6 billion | 5% |
Lilly’s figures put it ahead of the other two companies on revenue growth. Mounjaro and Zepbound accounted for nearly 65% of its sales. Lilly reported a 60% increase in volume, partly offset by a 13% decline in realized prices.
Outside the United States, Lilly said realized prices fell 36%, primarily because Mounjaro entered China’s National Reimbursement Drug List. Higher sales volumes outweighed that pricing pressure during the quarter, although the figures show how much growth depended on selling more treatments.
AbbVie reported combined Skyrizi and Rinvoq sales of $8.03 billion, approximately 47% of total revenue. Sales of the two medicines increased 24.4% and 24.5%, respectively, helping offset a 35.9% decline in Humira revenue. The results showed continued progress in replacing sales lost as Humira faced competition.
Merck reported combined Keytruda and Keytruda Qlex sales of $8.4 billion, roughly half its total revenue. The subcutaneous formulation, Keytruda Qlex, contributed $463 million, while sales of original Keytruda were approximately $7.9 billion and broadly unchanged.
Other Merck products grew from smaller bases. Winrevair sales increased 75% to $588 million, and combined Gardasil and Gardasil 9 sales rose 4% to $1.17 billion, according to the company.
Patent expirations create longer-term revenue exposure
Evaluate forecasts cited by BioPharma Dive put more than $500 billion in worldwide prescription-drug sales at potential risk from competition following patent expirations between 2026 and 2032. The estimate includes about $99 billion of sales exposure in 2028. These figures describe revenue potentially exposed to competition, rather than a forecast that all those sales will disappear.
The report identifies Keytruda’s expected patent expiry in 2028 as a significant issue for Merck. Its subcutaneous version is part of the company’s effort to extend the franchise’s commercial life.
AbbVie’s exposure increases in the early 2030s as Skyrizi and Rinvoq approach patent expirations. Evaluate’s forecast puts the company’s annual sales exposure at approximately $50 billion in 2032, according to BioPharma Dive.
The same publication, citing Evaluate’s dealmaking tally, reported $30.9 billion across six Merck deals announced since the start of 2024. The comparable totals were $27.2 billion for Lilly and $22.3 billion for AbbVie.
Acquisition costs affect earnings forecasts
In its second-quarter update, Merck reduced its 2026 non-GAAP earnings forecast to $2.66–$2.76 per share from $5.04–$5.16. Its outlook included one-time acquisition charges of $3.62 per share for Cidara and $2.31 for Terns; the Terns charges had not been included previously.
Merck also raised and narrowed its annual revenue forecast to $66.3 billion–$67.3 billion. The higher sales outlook alongside lower projected earnings reflects the importance of acquisition costs in interpreting the forecast change.
AbbVie revised its full-year adjusted diluted earnings guidance to $13.87–$14.07 per share in July, incorporating the expected impact of its Apogee Therapeutics acquisition. AbbVie completed that transaction on September 3 and reaffirmed the range, including a $0.14-per-share impact from the deal.
Lilly’s pipeline includes experimental obesity treatment
Lilly reported in July that retatrutide produced average weight loss of up to 22.6% at 80 weeks in TRIUMPH-3. The Phase 3 study enrolled adults with severe obesity and established cardiovascular disease, with or without type 2 diabetes.
The 22.6% result was for the highest studied dose, compared with 3.2% for placebo. Lilly said 13.5% of participants receiving that dose discontinued treatment because of adverse events, versus 4.8% receiving placebo.
Retatrutide remained investigational. Lilly said it planned to submit an application for U.S. approval in the first quarter of 2027.
