Published: February 6, 2025
Eli Lilly and Company (NYSE: LLY) has announced impressive financial results for the fourth quarter of 2024, along with detailed guidance for 2025. The company's performance was driven by significant growth in key products and strategic advancements in its pipeline.
- Revenue Growth: Q4 2024 revenue surged by 45% to $13.53 billion, primarily due to volume growth from Mounjaro and Zepbound. Non-incretin revenue also saw a 20% increase compared to Q4 2023.
- Pipeline Progress: Notable approvals include Zepbound for obstructive sleep apnea and Omvoh for Crohn's disease. The pending acquisition of Scorpion Therapeutics' PI3Kα inhibitor program further strengthens Lilly's portfolio.
- Earnings: Q4 2024 EPS increased by 102% to $4.88 on a reported basis and by 114% to $5.32 on a non-GAAP basis, both inclusive of $0.19 of acquired IPR&D charges.
- 2025 Guidance: Lilly anticipates revenue between $58.0 billion and $61.0 billion, with EPS ranging from $22.05 to $23.55 on a reported basis and $22.50 to $24.00 on a non-GAAP basis.
- Revenue: Worldwide revenue for Q4 2024 was $13.53 billion, a 45% increase from Q4 2023. This growth was driven by a 48% increase in volume, partially offset by a 4% decrease in realized prices.
- Key Products: Mounjaro and Zepbound led the revenue growth, with Mounjaro revenue increasing by 60% to $3.53 billion and Zepbound revenue reaching $1.91 billion.
- Geographic Performance: Revenue in the U.S. increased by 40% to $9.03 billion, while revenue outside the U.S. grew by 55% to $4.50 billion.
- Gross Margin: Gross margin increased by 47% to $11.13 billion, with a gross margin percentage of 82.2%, driven by favorable product mix.
- Expenses: Research and development expenses increased by 18% to $3.02 billion, and marketing, selling, and administrative expenses rose by 26% to $2.42 billion.
Lilly expects continued strong performance in 2025, with several key drivers:
- Revenue Growth: Anticipated revenue between $58.0 billion and $61.0 billion, driven by new medicines and approvals.
- EPS Guidance: EPS is expected to range from $22.05 to $23.55 on a reported basis and $22.50 to $24.00 on a non-GAAP basis.
- Operational Efficiency: The ratio of (Gross Margin - OPEX) / Revenue is expected to be between 40.5% and 42.5% on a reported basis and 41.5% and 43.5% on a non-GAAP basis.
- Manufacturing Expansion: Lilly is investing $3 billion to enhance its manufacturing capacity in Kenosha County, Wisconsin.
- Shareholder Returns: The company announced a $15 billion share repurchase program and a 15% increase in its quarterly dividend. #Pharma #Healthcare #Innovation #Biotech #FinancialResults
@David A. Ricks, Lilly's Chair and CEO, commented, "2024 was a highly successful year for Lilly. We enter 2025 with tremendous momentum and look forward to strong financial performance and several important Phase 3 readouts." This article is for informational purposes only and should not be considered financial advice. The information provided is based on publicly available data and is not intended to endorse or promote any specific investment or financial strategy. Always consult with a licensed financial advisor before making any investment decisions. The author and publisher disclaim any liability for any actions taken based on the information contained here.
