Lilly’s Q1 2024 Financials: Boosts Full-Year Revenue Projection by $2B, Highlights Pipeline Momentum

Eli Lilly and Company (NYSE: LLY) unveiled its financial performance for the first quarter of 2024 today.

David A. Ricks, Lilly’s chair and CEO, commented on the company’s robust year-over-year revenue growth, attributing it to strong sales of Mounjaro and Zepbound. Ricks emphasized the increasing demand for Lilly’s medicines, driven by efforts to address significant healthcare challenges. He highlighted ongoing investments in the pipeline and rapid expansion of manufacturing capacity to ensure broader availability of incretin medicines to patients.

Recent updates from Lilly include:

  • Positive topline results from the SURMOUNT-OSA Phase 3 trials, demonstrating tirzepatide’s significant reduction in the apnea-hypopnea index for adults with obstructive sleep apnea and obesity.
  • Submission of mirikizumab for treating adults with moderately to severely active Crohn’s disease in the U.S. and EU.
  • Resubmission of lebrikizumab for adult and adolescent patients with moderate-to-severe atopic dermatitis in the U.S.
  • Initiation of lepodisiran in a Phase 3 study assessing its efficacy in reducing cardiovascular risk.
  • FDA’s plan to convene an Advisory Committee meeting on the Phase 3 TRAILBLAZER-ALZ 2 trial, evaluating donanemab in early symptomatic Alzheimer’s disease.
  • Approval of the multi-dose Kwikpen delivery device for Mounjaro in the EU.
  • Positive results from a Phase 3 study of lebrikizumab for people with skin of color and moderate-to-severe atopic dermatitis.
  • The termination of the Phase 3 CYCLONE-3 trial evaluating Verzenio in metastatic hormone-sensitive prostate cancer.
  • An agreement to acquire a new injectable medicine manufacturing facility from Nexus Pharmaceuticals, LLC.
  • Groundbreaking at the $2.5 billion parenteral manufacturing site in Germany.

Financial Results:

  • Worldwide revenue in Q1 2024 reached $8.77 billion, marking a 26% increase over Q1 2023, driven by volume and higher realized prices.
  • Gross margin increased by 33% to $7.09 billion, with a margin of 80.9% of revenue.
  • Research and development expenses rose by 27% to $2.52 billion, while marketing, selling, and administrative expenses increased by 12% to $1.95 billion.
  • Net income and earnings per share (EPS) for Q1 2024 were $2.24 billion and $2.48, respectively, compared to $1.34 billion and $1.49 in Q1 2023.
  • Non-GAAP net income and EPS for Q1 2024 were $2.34 billion and $2.58, respectively, compared to $1.46 billion and $1.62 in Q1 2023.

Selected Revenue Highlights:

  • Mounjaro revenue surged to $1.81 billion in Q1 2024 from $568.5 million in Q1 2023.
  • Trulicity revenue decreased by 26% to $1.46 billion in Q1 2024 compared to Q1 2023.
  • Verzenio revenue increased by 40% to $1.05 billion in Q1 2024 compared to Q1 2023.
  • Jardiance revenue grew by 19% to $686.5 million in Q1 2024 compared to Q1 2023.
  • Taltz revenue increased by 15% to $604.1 million in Q1 2024 compared to Q1 2023.
  • Humalog revenue increased by 17% to $538.7 million in Q1 2024 compared to Q1 2023.
  • Zepbound revenue in the U.S. was $517.4 million in Q1 2024.

2024 Financial Guidance:

  • Full-year revenue guidance increased by $2.0 billion to a range of $42.4 billion to $43.6 billion.
  • The ratio of (Gross Margin – OPEX) / Revenue is expected to be in the range of 32% to 34% on a reported basis and 33% to 35% on a non-GAAP basis.
  • Other income (expense) guidance remains unchanged at a range of ($500) to ($400) million.
  • Tax rate guidance remains approximately 14%.
  • EPS guidance increased to the range of $13.05 to $13.55 on a reported basis and $13.50 to $14.00 on a non-GAAP basis.

Investors and the public can access a live webcast of the Q1 2024 financial results conference call through a link on Lilly’s website. Non-GAAP financial measures are provided to offer additional insights into the underlying trends in the company’s business.

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