Eli Lilly today announced its Q2 2024 financial results, highlighting strong performance driven by Mounjaro, Zepbound, and Verzenio, along with significant advancements in global manufacturing. David A. Ricks, Lilly’s chair and CEO, emphasized the company’s growth in treating cancer, neurological disorders, and autoimmune diseases. Notably, Lilly received FDA approval for Kisunla, an Alzheimer’s treatment decades in the making.
Recent key updates include:
- FDA approval of Kisunla™ (donanemab-azbt) for Alzheimer’s.
- Jaypirca® approval in Japan for mantle cell lymphoma.
- U.S. and EU submission of tirzepatide for obstructive sleep apnea in obese adults.
- Submission of mirikizumab in Japan for Crohn’s disease.
- Positive Phase 3 results for tirzepatide in heart failure and insulin efsitora alfa in type 2 diabetes.
- Agreement to acquire Morphic Holding, expanding Lilly’s immunology pipeline.
- A $5.3 billion investment to enhance API production in Indiana.
- A public warning about the risks of counterfeit tirzepatide medications.
- Executive leadership changes.
These developments underscore Lilly’s commitment to advancing treatments for serious diseases.
Eli Lilly reported its Q2 2024 financial results, showing a 36% increase in worldwide revenue to $11.30 billion compared to Q2 2023. This growth was driven by a 27% rise in volume and a 10% increase due to higher realized prices, partially offset by a 1% decline from unfavorable foreign exchange rates. Key drivers included Mounjaro®, Zepbound®, Verzenio®, Taltz®, and Jardiance®, while the sale of rights for Baqsimi® in Q2 2023 and declines in Trulicity® partially offset gains. Excluding Baqsimi, revenue grew by 46%, and volume by 37%.
The company’s incretin medications performed well, with production increases improving U.S. sales dynamics and stocking levels. Although supply and demand have stabilized, future demand could cause periodic supply tightness. Lilly plans to launch Zepbound 2.5 mg and 5 mg single-dose vials in the U.S. soon.
Higher realized prices were mainly driven by Mounjaro in the U.S., benefiting from favorable access and savings card dynamics. However, these dynamics are expected to have minimal impact in the latter half of 2024 as the $25 non-covered benefit expired on June 30, 2023. Revenue from New Products, which include Mounjaro and Zepbound, rose by $3.46 billion to $4.46 billion in Q2 2024. Growth Products, including Verzenio, Taltz, and Jardiance, saw a 3% increase to $5.05 billion, despite lower Trulicity sales.
U.S. revenue rose 42% to $7.84 billion, driven by a 27% increase in volume and a 15% increase in realized prices, with Mounjaro as the primary contributor. Outside the U.S., revenue grew by 25% to $3.47 billion, mainly due to the launch of Mounjaro KwikPen® in various markets.
Gross margin improved by 40% to $9.13 billion, representing 80.8% of revenue, an increase of 2.5 percentage points, driven by favorable product mix and higher realized prices. R&D expenses rose by 15% to $2.71 billion, accounting for 24% of revenue, reflecting ongoing investments in the company’s portfolio and workforce. Marketing, selling, and administrative expenses increased by 10% to $2.12 billion.
Lilly recognized $154.3 million in acquired in-process research and development (IPR&D) charges in Q2 2024, up from $97.1 million in Q2 2023. The company also incurred $435.0 million in asset impairment and restructuring charges related to anticipated litigation payments. Other expenses were $197.6 million, primarily due to net losses on investments in equity securities and higher net interest expenses.
The effective tax rate remained at 15.6% in both Q2 2024 and Q2 2023. Net income for Q2 2024 was $2.97 billion, with earnings per share (EPS) of $3.28, compared to $1.76 billion and $1.95 EPS in Q2 2023.
On a non-GAAP basis, gross margin increased by 40% to $9.27 billion, representing 82.0% of revenue. The non-GAAP effective tax rate was 16.5%, slightly higher than the 16.1% in Q2 2023. Non-GAAP net income for Q2 2024 was $3.54 billion, with EPS of $3.92, up from $1.90 billion and $2.11 EPS in Q2 2023.
