Lilly(LLY) - 2024 Q3 - Quarterly Report

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]