Eli Lilly and Company Reports Third Quarter 2024 Financial Results
INDIANAPOLIS, Oct. 30, 2024 - Eli Lilly and Company (NYSE: LLY) recently released its financial results for the third quarter of 2024.
Financial Overview
The company reported a 20% increase in revenue for Q3 2024. Key financial metrics are detailed as follows:
| Financial Metric | Q3 2024 | Q3 2023 | YoY Change | Wall Street Estimates |
|---|---|---|---|---|
| Total Revenue | $11.44B | - | +20% | $12.11B |
| EPS (Reported) | $1.07 | -$0.06 | - | $1.47 |
| EPS (Non-GAAP) | $1.18 | $0.10 | - | - |
Interpretation: Eli Lilly's Q3 revenue increased by 20%, significantly driven by volume growth from flagship drugs Mounjaro and Zepbound. However, the results fell short of Wall Street's revenue estimates and the EPS estimates, reflecting higher IPR&D charges in the quarter.
Revenue by Segment
A breakdown of revenue performance across major segments is provided below:
| Segment | Q3 2024 Revenue | YoY Change | Comments |
|---|---|---|---|
| Mounjaro | $3.11B | +120% | Strong demand & increased supply |
| Trulicity | $1.30B | -22% | Competitive dynamics |
| Verzenio | $1.37B | +32% | Increased demand |
| Zepbound | $1.26B | - | Launch impact in U.S. |
| Taltz | $879.6M | +18% | Higher prices & demand |
Segment Analysis: Mounjaro demonstrated robust growth, contributing substantially to the overall revenue increase. Trulicity faced a revenue decrease due to competitive pressures, while Verzenio and Taltz saw significant demand-driven revenue growth.
Key Developments and Operational Highlights
- U.S. FDA approval of Ebglyss™ for atopic dermatitis.
- Approval of Kisunla™ in Japan for Alzheimer's disease.
- Positive Phase 3 data for tirzepatide and TRAILBLAZER-ALZ 6 trial.
- Launch of Zepbound in U.S. with exclusive distribution through LillyDirect®.
- Completed acquisition of Morphic Holding, Inc.
- $1.8 billion manufacturing investment in Ireland.
- Opened Lilly Seaport Innovation Center for genetic medicines.
- Announced a $4.5 billion Lilly Medicine Foundry in Indiana.
- Appointment of Lucas Montarce as CFO.
Executive Commentary
David A. Ricks, Lilly’s chair and CEO, highlighted the company’s impressive growth in Q3, with a notable 42% increase in total revenue when excluding the divestiture activity from the previous year. Ricks emphasized the strong performance of Mounjaro and Zepbound, as well as growth in non-incretin revenue.
Forward Guidance
Lilly updated its full-year 2024 revenue guidance to a range of $45.4 billion to $46.0 billion, reflecting adjustments due to IPR&D charges. This guidance also includes a revised EPS forecast of $12.05 to $12.55 on a reported basis, and $13.02 to $13.52 on a non-GAAP basis.
Stock Price Movement
Following the earnings release, Eli Lilly's stock experienced a 1.71% uptick, reflecting investor optimism towards the company's future prospects despite the adjustment in annual guidance.
Overall, Eli Lilly showcased robust segment growth and strategic advancements in Q3 2024, positioning itself for continued expansive growth, although the results did not meet analysts' expectations primarily due to acquisition charges impacting the earnings.
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