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Eli Lilly and Company (LLY) is a global pharmaceutical company involved in the discovery, development, manufacturing, and marketing of products across various therapeutic areas. The company boasts a diverse product portfolio, with significant contributions from its incretin medicines, including Mounjaro and Zepbound, which have demonstrated strong sales growth . In addition to these, Eli Lilly's Growth Products category, featuring Verzenio, Taltz, and Jardiance, plays a crucial role in its revenue generation . The company actively engages in business development activities, such as acquisitions and collaborations, to enhance its product pipeline and expand capabilities in fields like radiopharmaceuticals and immunology .
- Incretin Medicines - Focuses on incretin-based therapies, with Mounjaro and Zepbound driving significant revenue growth.
- Growth Products - Includes Verzenio, Taltz, and Jardiance, which are key contributors to the company's revenue.
- Business Development - Engages in acquisitions and collaborations to expand capabilities in radiopharmaceuticals and immunology.
- With the approval of Novartis's competitor in early breast cancer, how does Lilly plan to protect Verzenio's market share in the high-risk patient segment and mitigate potential erosion due to new entrants?
- Given some employers are opting out of coverage for Mounjaro and Zepbound, what strategies does Lilly have to address payer restrictions and improve access, especially as you ramp up demand generation activities?
- How do you anticipate the Inflation Reduction Act will impact key brands like Verzenio, and what preparations are you making for potential inclusion on the drug negotiation list in 2027?
- After terminating the Phase IIb study of parasolimab in rheumatoid arthritis due to benefit-risk concerns, how will this affect your immunology pipeline, and what lessons have been learned for future development efforts?
- Considering the issues with compounding pharmacies and the upcoming introduction of oral GLP-1 therapies like orforglipron, how is Lilly addressing the compounding crisis, and what are your expectations for FDA actions to resolve this on a product-by-product basis?
Competitors mentioned in the company's latest 10K filing.
- AbbVie Inc.; Amgen Inc.; AstraZeneca PLC; Biogen Inc.; Bristol-Myers Squibb Company; Gilead Sciences Inc.; GlaxoSmithKline plc; Johnson & Johnson; Merck & Co., Inc.; Novartis AG; Novo Nordisk A/S; Pfizer Inc.; Roche Holding AG; Sanofi S.A.; and Takeda Pharmaceutical Company Limited (These companies are part of the peer group used for performance benchmarking and executive compensation purposes for 2023) .
| Customer | Relationship | Segment | Details |
|---|---|---|---|
McKesson Corporation | Wholesale distributor | All | Accounted for 16%-21% of consolidated revenue for 2023, 2022, 2021, and 18%-29% of accounts receivable as of December 31, 2023. |
Cencora, Inc. (formerly AmerisourceBergen) | Wholesale distributor | All | Accounted for 16%-21% of consolidated revenue for 2023, 2022, 2021, and 18%-29% of accounts receivable as of December 31, 2023. |
Cardinal Health, Inc. | Wholesale distributor | All | Accounted for 16%-21% of consolidated revenue for 2023, 2022, 2021, and 18%-29% of accounts receivable as of December 31, 2023. |
Recent developments and announcements about LLY.
Financial Reporting
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2024 Revenue Guidance:
- Full-year revenue is expected to be approximately $45.0 billion, representing a 32% growth compared to 2023.
- Q4 2024 revenue is projected at $13.5 billion, which is $400 million below the low end of the previously issued guidance. This shortfall is attributed to slower-than-expected growth in the U.S. incretin market and lower channel inventory at year-end.
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2025 Revenue Guidance:
- Revenue is anticipated to range between $58.0 billion and $61.0 billion, reflecting a 32% growth at the midpoint compared to 2024.
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Key Product Performance:
- Mounjaro® and Zepbound® contributed significantly to Q4 2024 revenue, with sales of $3.5 billion and $1.9 billion, respectively.
- Non-incretin revenue grew by 20% compared to Q4 2023, driven by strong performance in oncology, immunology, and neuroscience medicines.
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2025 Growth Drivers:
- Revenue growth is expected from new medicines such as Jaypirca®, Ebglyss™, Omvoh®, and Kisunla™, as well as new indications for existing products.
- Expansion of Mounjaro into additional markets and potential launches of new medicines like imlunestrant for metastatic breast cancer are also anticipated to contribute.
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Operational Updates:
- Lilly plans to increase manufacturing capacity, producing 60% more salable doses of incretins in the first half of 2025 compared to the same period in 2024.
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Upcoming Events:
- Full Q4 2024 financial results and 2025 guidance will be shared on February 6, 2025.
Earnings Report
Eli Lilly and Company (LLY) Earnings Update
On January 14, 2025, Eli Lilly and Company provided updates on its financial performance and guidance:
This update highlights Eli Lilly's strong growth trajectory, driven by its incretin portfolio and new product launches, despite minor setbacks in Q4 2024 revenue expectations.
Sources:
Corporate Leadership
Board Change
Jon Moeller has been elected as a new member of Eli Lilly and Company's board of directors, effective December 1, 2024. Additionally, Karen Walker will resign from the board effective December 31, 2024 .
CFO Change
Eli Lilly and Company has appointed Lucas Montarce as the new executive vice president and chief financial officer (CFO), effective immediately as of September 9, 2024. Montarce has been with the company since 2001 and has held various finance leadership roles. His most recent position was as president and general manager for the Spain, Portugal, and Greece hub. Montarce will receive an annualized base salary of $1,000,000 and is eligible for an annualized target bonus of $1,000,000 .