Financial Performance - Revenue for the three months ended March 31, 2025, was $12,728.5 million, a 45% increase from $8,768.0 million in the same period of 2024[114] - Net income for the same period was $2,759.3 million, up 23% from $2,242.9 million year-over-year[114] - Earnings per share (diluted) increased to $3.06, a 23% rise compared to $2.48 in the prior year[114] - U.S. revenue increased by 49% to $8,489.4 million, while revenue outside the U.S. rose by 38% to $4,239.1 million[131] - Mounjaro revenue reached $3,841.8 million, a 113% increase from $1,806.5 million in the previous year[134] - Zepbound revenue in the U.S. was $2.31 billion, compared to $517.4 million in the same quarter of 2024, driven by increased demand[135] - Revenue of Verzenio increased 3 percent in the U.S. and 22 percent outside the U.S. during the three months ended March 31, 2025[136] - Gross margin for the three months ended March 31, 2025 was $10,504.3 million, a 48 percent increase from $7,094.5 million in 2024, with a gross margin percentage of 82.5%[137] Expenses and Investments - Research and development expenses rose 8 percent to $2,733.7 million, reflecting continued investments in the portfolio[138] - Marketing, selling, and administrative expenses increased 26 percent to $2,468.8 million, driven by promotional efforts for ongoing and future launches[139] Debt and Cash Management - Total debt increased to $38.52 billion as of March 31, 2025, up $4.87 billion from $33.64 billion as of December 31, 2024[148] - Cash and cash equivalents decreased to $3.09 billion as of March 31, 2025, compared to $3.27 billion as of December 31, 2024[145] - The company repurchased $1.20 billion of shares during the three months ended March 31, 2025, with $13.80 billion remaining under the share repurchase program[150] - The company has $8.42 billion of unused committed bank credit facilities, with $8.00 billion available to support the commercial paper program[149] Regulatory and Market Challenges - The company withdrew its U.S. application for tirzepatide for heart failure with preserved ejection fraction in 2025[116] - The European Medicines Agency did not recommend donanemab for approval for early symptomatic Alzheimer's disease, and the company is seeking re-examination[116] - Jardiance was selected for government-set prices effective in 2026, which may influence future business strategies[118] - The company continues to face challenges from regulatory scrutiny and potential tariffs that could impact operations and costs[120] Taxation - The effective tax rate increased to 20.2 percent for the three months ended March 31, 2025, compared to 11.6 percent in 2024[140] Future Commitments - The company expects to incur up to approximately $8 billion in payments related to executed agreements for contract manufacturing and supply of materials over the next several years[144]

Core Insights - Eli Lilly reported a revenue of $12.73 billion for the quarter ended March 2025, marking a 45.2% increase year-over-year, with an EPS of $3.34 compared to $2.58 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $12.62 billion by 0.86%, while the EPS fell short of the consensus estimate of $3.52 by 5.11% [1] Financial Performance - Key metrics indicate that Eli Lilly's shares have returned +9.9% over the past month, contrasting with a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Sales Breakdown - Verzenio in the U.S. generated net sales of $657.60 million, below the average estimate of $720.57 million, reflecting a year-over-year increase of 3% [4] - Neuroscience products in the U.S. achieved net sales of $189.30 million, slightly above the average estimate of $188.66 million, with a year-over-year growth of 16% [4] - Geographic revenue from the U.S. reached $8.49 billion, slightly below the $8.50 billion estimate, representing a 49.1% year-over-year increase [4] - Humalog's net sales were $335.10 million, below the average estimate of $361.22 million, showing a year-over-year decline of 1% [4] - Cyramza's total net sales were $224.90 million, slightly below the estimate of $227.45 million, with a year-over-year decrease of 2.2% [4] - Humulin's net sales were $173.20 million, significantly below the estimate of $203.01 million, reflecting a 16% year-over-year decline [4] - Forteo's net sales were $66.60 million, exceeding the average estimate of $50.84 million, with an 8.7% year-over-year increase [4] - Erbitux's net sales were $149 million, slightly above the estimate of $146.04 million, indicating a 3% year-over-year increase [4] - Alimta's net sales were $28.20 million, significantly below the estimate of $46.13 million, showing a 59.4% year-over-year decline [4] - Other pharmaceuticals generated net sales of $212.90 million, slightly below the estimate of $213.18 million, reflecting a 12% year-over-year decline [4] - Oncology products achieved net sales of $1.95 billion, below the average estimate of $2.07 billion, with a year-over-year increase of 7.6% [4]

Financial Data and Key Metrics Changes - Revenue grew 45% compared to Q1 2024, reaching $7.5 billion, driven by key products [8][9][14] - Gross margin as a percentage of revenue was 83.5%, an increase of one percentage point year-over-year [14] - Earnings per share (EPS) was $3.34, compared to $2.58 in Q1 2024, reflecting a significant increase despite the negative impact of acquired R&D charges [16][29] Business Line Data and Key Metrics Changes - Key products, including Evglis, Jaypirca, Kisunla, Monjaro, Umvoh, Verzenio, and Zefbound, contributed over $4 billion to revenue [9] - Monjaro sales exceeded $3.8 billion, more than doubling from the same quarter last year, establishing it as the market leader in new prescriptions for diabetes incretin [24][25] - Zepbound sales increased significantly, with the U.S. branded anti-obesity market leader reaching 60% of total prescriptions [26] Market Data and Key Metrics Changes - U.S. revenue increased by 49%, driven by strong volume growth, despite a 7% decline in price [17] - European revenue grew 71% in constant currency, with a one-time benefit of $370 million from restructuring an alliance [17] - Revenue in China increased by 21% in constant currency, primarily driven by Mounjaro [18] Company Strategy and Development Direction - The company is focused on expanding its manufacturing capabilities in the U.S., with over $50 billion in new investments since 2020 [10] - Plans to submit regulatory applications for obesity treatments by the end of 2025, with ongoing clinical trials for orforglipron [8][30] - The company aims to enhance access and reimbursement for its products while navigating complex tariff and trade environments [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of innovation and access to medicines [39] - The impact of tariffs on financial outlook is considered limited, with ongoing monitoring of the external environment [29] - Management highlighted the potential of orforglipron to provide a convenient oral option for diabetes and obesity treatment [30][31] Other Important Information - The company distributed $1.3 billion in dividends and executed a $1.2 billion share repurchase in Q1 [10] - The effective tax rate for Q1 was 20.2%, impacted by non-deductible acquired R&D charges [16] Q&A Session Summary Question: Concerns about CVS formulary announcement favoring Wegovy over Zepbound - Management acknowledged the competitive dynamics and emphasized their focus on expanding access and improving product offerings [42][43] Question: Positioning of orforglipron in the market - Management indicated that orforglipron could be positioned for multiple indications beyond weight loss, with a focus on primary care [49][51] Question: Role of orforglipron in the obesity and diabetes market - Management highlighted the significant opportunity for oral medications, noting that many patients prefer oral options over injectables [56][59] Question: FDA requirements for tirzepatide in heart failure - Management noted that the FDA requires additional trials to support the indication, despite strong data from the SUMMIT trial [100][102] Question: Impact of CVS formulary decision on pricing and market dynamics - Management reiterated their commitment to innovation and differentiation, focusing on expanding access rather than reducing it [75][76] Question: Update on Alzheimer's portfolio and TB3 study - Management confirmed enrollment completion in the TB3 study, with expectations for earlier readouts than previously indicated [82][83] Question: Evolus tracking against sales expectations - Management expressed confidence in the uptake of Evolus, noting positive feedback from physicians and ongoing efforts to improve access [88][90]

Eli Lilly (LLY) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by and welcome to the Lilly Q1 twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will be conducting a question and answer session and instructions will be given at that time. I would now like to turn the conference over to your host, Mike Senior Vice President of Investor Relations. Please go ahead. Speaker1 Good morning. Thank yo ...

Core Viewpoint - Eli Lilly's CEO David Ricks emphasizes the company's readiness to address national security concerns related to the importation of essential medicines, particularly in light of potential pharmaceutical tariffs being considered by the Trump administration [1][2][3]. Group 1: National Security and Tariffs - The Trump administration has initiated a Section 232 investigation regarding the impact of drug imports on national security, potentially leading to tariffs on pharmaceuticals [2]. - Ricks acknowledges the validity of national security concerns regarding older generic drugs, which constitute about 90% of prescribed medicines in the U.S. [3]. - Ricks expresses uncertainty about whether tariffs are the appropriate solution to these concerns, suggesting that Eli Lilly is open to discussions with the administration on how to respond to potential crises [3][4]. Group 2: Manufacturing and Investment - Eli Lilly plans to invest at least $27 billion to establish four new production sites in the U.S., indicating a proactive approach to domestic manufacturing in response to tariff threats [5]. - Ricks notes that the threat of tariffs is already prompting a resurgence of critical supply chains in industries such as pharmaceuticals [6]. - The company advocates for permanent lower tax rates for domestic production, suggesting that economic incentives could encourage drugmakers to return manufacturing to the U.S. from low-tax countries [6].

Group 1 - Company Eli Lilly (LLY.US) reported Q1 2025 earnings with revenue of $12.73 billion, slightly exceeding market expectations of $12.67 billion [1] - Adjusted EPS for the quarter was $3.34, significantly higher than Wall Street's expectation of $3.10 [1] - The company lowered its full-year adjusted EPS guidance to a range of $20.78 to $22.28, down from the previous guidance of $22.50 to $24 [1] Group 2 - Core products performed as expected, with the weight loss drug Zepbound generating $2.31 billion in sales, in line with analyst expectations [2] - Diabetes drug Mounjaro achieved $3.84 billion in revenue, slightly above the analyst forecast of $3.77 billion [2] - The company faces competitive pressure as CVS Health announced a reduction in Novo Nordisk's weight loss drug procurement prices, potentially impacting Eli Lilly's market share [2]

Eli Lilly (LLY) came out with quarterly earnings of $3.34 per share, missing the Zacks Consensus Estimate of $3.52 per share. This compares to earnings of $2.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.11%. A quarter ago, it was expected that this drugmaker would post earnings of $5.03 per share when it actually produced earnings of $5.32, delivering a surprise of 5.77%.Over the last four quarters, the company has su ...

Financial Performance - Total revenue reached $12.7 billion, a 45% increase compared to Q1 2024[11] - Key product revenue surged to $7.5 billion, representing a 119% growth rate[11] - Non-GAAP earnings per share (EPS) increased by 29% to $3.34[11] - The company reaffirms its 2025 revenue guidance of $58.0 billion to $61.0 billion[9] Market Leadership and Expansion - The company gained U.S. incretin analogs market leadership with a 53.3% market share in total prescriptions[9] - Mounjaro U.S. type 2 diabetes incretin analogs TRx share of market (SOM) reached 39% and NBRx SOM 46% at the end of Q1 2025[22] - Zepbound U.S. branded anti-obesity TRx SOM exceeded 60% and NBRx SOM 74% at the end of Q1 2025[22] Strategic Investments and Pipeline Development - The company announced plans to double U.S. manufacturing investments, committing a total of $50 billion since 2020[9] - Research & Development investment reached $2.7 billion, accounting for 8% growth[11] - The company disclosed positive Phase 3 trial results for oral GLP-1, orforglipron, demonstrating statistically significant efficacy and a safety profile consistent with injectable GLP-1 medicines[9] - Jaypirca achieved Q1 2025 sales of $92 million and secured regulatory approval in the EU for relapsed or refractory CLL patients previously treated with a BTK inhibitor[22]

May 1, 2025 For release: Immediately Refer to: Ashley Hennessey; gentry_ashley_jo@lilly.com; (317) 416-4363 (Media) Mike Czapar; czapar_michael_c@lilly.com; (317) 617-0983 (Investors) First-Quarter Reported Results In Q1 2025, worldwide revenue was $12.73 billion, an increase of 45% compared with Q1 2024, driven by a 53% increase in volume, partially offset by a 6% decrease due to lower realized prices and a 2% unfavorable impact of foreign exchange rates. Key Products revenue grew by $4.09 billion to $7.52 ...

Core Insights - Eli Lilly and Company reported a strong financial performance in Q1 2025, with a 45% year-over-year revenue growth driven by robust sales of Mounjaro and Zepbound [2][3][7] - The company is investing in manufacturing to meet global demand for its new medicines, including plans to build four new facilities [2][19] - The pipeline continues to show promise with recent product approvals in oncology and immunology, and positive Phase 3 trial results for orforglipron in diabetes and obesity [2][19] Financial Results - Total revenue for Q1 2025 was $12.73 billion, a 45% increase from $8.77 billion in Q1 2024, primarily due to a 53% increase in volume [3][7] - Net income for Q1 2025 was $2.76 billion, up 23% from $2.24 billion in Q1 2024, with reported earnings per share (EPS) increasing to $3.06 from $2.48 [11][36] - Non-GAAP net income was $3.00 billion, a 29% increase from $2.34 billion in Q1 2024, with non-GAAP EPS rising to $3.34 from $2.58 [13][36] Revenue Breakdown - U.S. revenue increased by 49% to $8.49 billion, driven by a 57% increase in volume, mainly from Zepbound and Mounjaro [4][7] - Revenue outside the U.S. rose 38% to $4.24 billion, with a 46% increase in volume, primarily from Mounjaro and Jardiance [5][7] - Mounjaro revenue surged 113% to $3.84 billion, while Zepbound revenue reached $2.31 billion, up from $517.4 million in Q1 2024 [16][17] Cost and Margin Analysis - Gross margin increased 48% to $10.50 billion, with a gross margin percentage of 82.5%, up 1.6 percentage points from the previous year [6][11] - Research and development expenses rose 8% to $2.73 billion, representing 21.5% of revenue, while marketing, selling, and administrative expenses increased 26% to $2.47 billion [8][11] Guidance and Future Outlook - The company reaffirmed its 2025 revenue guidance of $58.0 billion to $61.0 billion, with an expected performance margin of 40.5% to 42.5% on a reported basis [20][22] - The effective tax rate for 2025 is projected to be around 17%, up from approximately 16% [21][22] - EPS guidance for 2025 has been adjusted to a range of $20.17 to $21.67 on a reported basis, reflecting the impact of acquired IPR&D charges [22][23]