Boston, MA - August 13: Sarah Mullins, a scientist at Amplitude Therapeutics, works at the new Lilly ... [+] Seaport Innovation Center, a 12-story 346,000-square-foot building along Fort Point Channel. (Photo by David L. Ryan/The Boston Globe via Getty Images) Boston Globe via Getty Images Eli Lilly stock (NYSE: LLY) fell over 6% on Wednesday, October 30, after it posted downbeat results. The company reported revenue of $11.4 billion and adjusted earnings of $1.18 per share, well below the consensus estimat ...

Accounting for an acquisition Eli Lilly completed in August made a big impact on earnings expectations for 2024. Eli Lilly (LLY -6.28%) stock tanked after the company reported third-quarter results on Wednesday, Oct. 30. The report it issued before the opening bell was more than a little problematic. In addition to top-line figures that missed Wall Street expectations, management lowered its earnings outlook. If there's one thing the stock market hates, it's unpredictability. Eli Lilly shares were down by m ...

Financial Data and Key Metrics - Revenue grew 42% excluding the impact of the divested olanzapine portfolio, driven by new products like Mounjaro and Zepbound [7] - New product revenue grew by over $3 billion, with U.S. prescription volume growth of 25% in Q3 [7] - Gross margin increased to 82.2%, benefiting from favorable product mix and higher realized prices [16] - Operating income reached nearly $1.8 billion, driven by higher revenue from new products [18] - Earnings per share (EPS) was $1.18, up from $0.10 in Q3 2023, despite a negative impact of $3.08 from acquired IPR&D charges [18] Business Line Performance - Mounjaro sales were $3.1 billion globally, with $2.4 billion in the U.S. and $728 million outside the U.S. [23] - Verzenio sales increased 32% worldwide, driven by strong execution in early breast cancer [23] - Jaypirca revenue was $81 million, showing sustained uptake in MCL and CLL patient populations [24] - Omvoh revenue increased to $41 million, with first-line access at two out of three major PBMs expected by January 2025 [24] - Trulicity revenue declined 22%, driven by lower volume partially offset by higher realized prices [25] Market Performance - U.S. revenue increased 46%, with volume growth of 35% driven by Zepbound and Mounjaro [19] - Europe revenue grew 39% in constant currency, driven by Mounjaro, Verzenio, and Jardiance [21] - Revenue in the rest of the world grew 45% in constant currency, led by Mounjaro [21] - China revenue increased 17% in constant currency, driven by volume growth of Tyvyt and favorable pricing for Humalog [22] - Japan revenue grew 17% in constant currency, with volume growth of 20% driven by Mounjaro, Verzenio, and Jardiance [22] Strategy and Industry Competition - The company invested nearly $2 billion in manufacturing expansion in Ireland, bringing total commitments since 2020 to over $20 billion [11] - A separate $4.5 billion investment was announced for the Lilly Medicine Foundry, focusing on R&D for manufacturing process design [12] - The acquisition of Morphic Therapeutics added oral integrin assets to the early-phase immunology portfolio [13] - The company returned over $1.6 billion to shareholders via dividends and share repurchases [13] Management Commentary on Operating Environment and Future Outlook - The company expects to exceed the production target of at least 1.5 times the saleable doses of incretin medicines in the second half of 2024 compared to the second half of 2023 [8] - Management is confident in the company's future, with a cohort of medicines expected to drive growth through the balance of the decade [63] - The company plans to scale R&D and increase investments in manufacturing and commercial operations to support successful launches in 2025 [63] Other Important Information - The company updated its full-year revenue guidance to $45.4 billion to $46 billion, representing approximately 50% growth in Q4 2024 compared to the same quarter last year [28] - The expected effective tax rate was updated to approximately 17%, driven by the impact of non-deductible IPR&D in Q3 [32] - EPS is now expected to be in the range of $12.05 to $12.55 on a reported basis and $13.02 to $13.52 on a non-GAAP basis [32] Q&A Session Summary Question: Bridge from Q3 sales to Q4 implied results - The company expects a 50% growth in Q4 compared to Q3, driven by accelerated demand generation efforts and improved capacity [66][70] Question: Q3 volatility and demand trends - The company attributed Q3 volatility to channel stocking dynamics and supply constraints, but underlying demand remains strong [72][77] Question: Impact of compounding on demand - The company does not see a significant financial impact from compounding but is concerned about safety and quality issues [79][81] Question: Resolution of compounding crisis with oral small molecules - The company believes oral products like orforglipron could help address the compounding issue in the long term, but it is not a crisis for Lilly [86][88] Question: Access and demand generation for Zepbound - The company has made significant progress in access for Zepbound, with 87% commercial access and ongoing efforts to expand employer opt-ins [91][93] Question: Supply capacity for 2025 - The company expects strong growth in supply capacity for 2025, driven by previous investments in manufacturing [100][102] Question: Inventory dynamics and LillyDirect launch - The launch of LillyDirect self-pay had a limited impact on Q3 sales, but the company expects it to be an important channel for future growth [105][107] Question: DTC for Zepbound and competition - The company is initiating DTC efforts to drive consumer awareness, as unaided awareness for Zepbound remains low [111][115] Question: Peresolimab and PD-1 agonist development - The company discontinued peresolimab due to an unfavorable benefit-risk profile in Phase 2b and does not currently have a follow-on PD-1 agonist in development [118][121] Question: Verzenio market share and IRA impact - The company expects Verzenio to maintain its position in the high-risk adjuvant setting, with Part D reform likely having a neutral impact [123][126] Question: Operating margin trajectory - The company expects operating margin expansion in the short term, with continued investments in SG&A and R&D driving long-term growth [130][134] Question: Pricing evolution for Mounjaro and Zepbound - The company expects stable pricing for Mounjaro and Zepbound, with potential impacts from new indications like obstructive sleep apnea [136][138] Question: Long-term obesity market and orforglipron - The company sees significant potential for orforglipron to expand the obesity market, particularly as an oral option with efficacy comparable to injectables [141][145]

U.S. stocks traded higher toward the end of trading, with the Dow Jones index gaining around 0.1% on Wednesday.The Dow traded up 0.07% to 42,262.68 while the NASDAQ fell 0.05% to 18,703.09. The S&P 500 also fell, dropping, 0.03% to 5,831.09.Check This Out: Top 3 Tech And Telecom Stocks Which Could Rescue Your Portfolio For OctoberLeading and Lagging SectorsCommunication services shares rose by 1.8% on Wednesday.In trading on Wednesday, information technology shares fell by 0.9%.Top HeadlineOn Wednesday, Eli ...

Eli Lilly's stock (NYSE: LLY ) has been duly adjusted this AM following a surprise slash to its full year 2024 guidance. This marks a stark pivot from two consecutive quarters of raised revenue guidance in the billions, driven by continued demand momentum Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not ...

An Eli Lilly & Co. Zepbound injection pen arranged in the Brooklyn borough of New York, US, on Thursday, March 28, 2024. Eli Lilly's blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro posted weaker-thanexpected sales for the third quarter, even as supply of both medicines have largely recovered from widespread shortages in the U.S. The reason, according to the company, is not an issue of demand or supply. Eli Lilly instead blamed disappointing sales on drug wholesalers cutting inventory o ...

Derek Lowe, an Arkansan by birth, got his BA from Hendrix College and his PhD in organic chemistry from Duke before spending time in Germany on a Humboldt Fellowship on his post-doc. He's worked for several major pharmaceutical companies since 1989 on drug discovery projects against schizophrenia, Alzheimer's, diabetes, osteoporosis and other diseases. To contact Derek, email him directly: derekb.lowe@gmail.com (mailto:derekb.lowe@gmail.com) ...

Eli Lilly and Company (LLY) reported third-quarter 2024 adjusted earnings per share (“EPS”) of $1.18, which missed the Zacks Consensus Estimate of $1.52 per share. In the year-ago quarter, the company had reported earnings of 10 cents per share.Adjusted earnings included an acquired in-process research and development (IPR&D) charge of $3.08 per share, primarily related to the acquisition of Morphic, which was closed in August.Revenues of $11.44 billion rose 20% year over year. Total revenues, however, miss ...

When looking for mistakes I made in the past, it is not difficult in more than 750 available articles about more than 100 different companies to find huge mistakes. Everybody is making mistakes – including me. And one articleMy analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization ( ...

Revenue Growth - Revenue for the three months ended September 30, 2024 increased by 20% to $11,439.1 million compared to $9,498.6 million in the same period in 2023[110] - Revenue for the nine months ended September 30, 2024 increased by 27% to $31,509.9 million compared to $24,770.7 million in the same period in 2023[110] - U.S. revenue for Q3 2024 increased by 46% to $7,813.6 million compared to $5,368.1 million in Q3 2023[130] - Outside U.S. revenue for Q3 2024 decreased by 12% to $3,625.5 million compared to $4,130.5 million in Q3 2023[130] - Consolidated revenue for Q3 2024 increased by 20% to $11,439.1 million compared to $9,498.6 million in Q3 2023[130] - U.S. revenue for the nine months ended September 30, 2024 increased by 39% to $21,343.2 million compared to $15,335.6 million in the same period in 2023[130] - Outside U.S. revenue for the nine months ended September 30, 2024 increased by 8% to $10,166.7 million compared to $9,435.0 million in the same period in 2023[130] - Consolidated revenue for the nine months ended September 30, 2024 increased by 27% to $31,509.9 million compared to $24,770.7 million in the same period in 2023[130] Net Income - Net income for the three months ended September 30, 2024 was $970.3 million, compared to a net loss of $57.4 million in the same period in 2023[110] - Net income for the nine months ended September 30, 2024 was $6,180.2 million, compared to $3,050.7 million in the same period in 2023[110] Product Development and Approvals - The company has approximately 50 new medicine candidates in clinical development or under regulatory review[112] - Tirzepatide (Mounjaro, Zepbound) Phase 3 trial for cardiovascular outcomes in type 2 diabetes is ongoing[113] - Insulin Efsitora Alfa Phase 3 trials for type 1 and type 2 diabetes met primary endpoints in 2024[113] - Donanemab was approved in the U.S. and Japan in 2024 for early Alzheimer's disease[114] - Jaypirca (Pirtobrutinib) was approved in the U.S. in 2023 for chronic lymphocytic leukemia and mantle cell lymphoma[116] - Imlunestrant Phase 3 trial for ER+HER2- metastatic breast cancer was announced positive in 2024[116] Product Revenue - Mounjaro U.S. revenue for the three months ended September 30, 2024 was $2.38 billion, a significant increase from $1.28 billion in the same period in 2023[135] - Mounjaro U.S. revenue for the nine months ended September 30, 2024 was $6.32 billion, compared to $2.73 billion in the same period in 2023[135] - Trulicity U.S. revenue decreased by 26% and 31% for the three and nine months ended September 30, 2024, respectively[135] - Verzenio U.S. revenue increased by 28% and 37% for the three and nine months ended September 30, 2024, respectively[137] - Zepbound U.S. revenue for the three and nine months ended September 30, 2024 was $1.26 billion and $3.02 billion, respectively[137] - Taltz U.S. revenue increased by 18% and 15% for the three and nine months ended September 30, 2024, respectively[137] Volume and Price Impact - Volume growth in the U.S. for Q3 2024 was 35%, driven by Zepbound and Mounjaro, partially offset by declines in Trulicity[131] - Price increases in the U.S. for Q3 2024 contributed 11% to revenue growth, driven by Humalog, Verzenio, and Trulicity[131] - Volume growth outside the U.S. for the nine months ended September 30, 2024 was 10%, primarily driven by Mounjaro and Verzenio[131] - Jardiance® subject to a 66% discount compared to 2023 U.S. calendar year list pricing for a 30-day supply under the Inflation Reduction Act[119] Financial Metrics - Gross margin as a percent of revenue increased by 0.6 percentage points and 2.3 percentage points for the three and nine months ended September 30, 2024, respectively[138] - Research and development expenses increased by 13% and 18% for the three and nine months ended September 30, 2024, respectively[138] - Marketing, selling, and administrative expenses increased by 16% and 13% for the three and nine months ended September 30, 2024, respectively[138] - Effective tax rate for the nine months ended September 30, 2024 was 19.1%, compared to 24.6% in the same period in 2023[139] - Acquired IPR&D charges for Q3 and nine months ended September 30, 2024 were primarily related to the acquisition of Morphic[141] - Net investment gains on equity securities were $(112.4) million for Q3 and $29.5 million for nine months ended September 30, 2024[141] - Effective tax rates were 38.9% for Q3 and 19.1% for nine months ended September 30, 2024[141] Cash and Debt - Cash and cash equivalents increased to $3.37 billion as of September 30, 2024, compared to $2.82 billion as of December 31, 2023[142] - Total debt increased to $31.12 billion as of September 30, 2024, up by $5.89 billion from December 31, 2023[142] - Company acquired Morphic for approximately $2.67 billion in Q3 2024, funded by debt issuance[142] Share Repurchase and Dividends - Company repurchased $521.1 million of shares under its $5.00 billion share repurchase program during nine months ended September 30, 2024[144] - Dividends paid during nine months ended September 30, 2024 totaled $3.51 billion, or $3.90 per share[144] - Company declared a Q4 2024 dividend of $1.30 per share, totaling approximately $1.17 billion[144] - Unused committed bank credit facilities totaled $8.42 billion as of September 30, 2024[144]