Eli Lilly (LLY) is likely to post a strong volume growth in Q3 that is expected to outweigh pricing headwinds, RBC Capital Markets said in a Monday note. The Q3 results are due Oct. 29.

RBC analysts said they are about 2% above consensus on sales, driven by Zepbound and Mounjaro, partially offset by modest pricing pressure, and weaker ex-GLP-1 sales. They expect Q3 EPS of $6.34 on revenue of $22.95 billion.

A recent sell-down of the shares on Bridge Program pricing concerns was overdone as Bridge now represents only about 10% of US total prescriptions, the report said.

The analysts also said they expect an increase of some $2 billion in guidance on the back of continued incretin momentum in the quarter, in line with increases in Q1 and Q2.

RBC kept its outperform rating and price target of $1,500.

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