[Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) This section details the registrant, filing period, filer status, and common stock outstanding for the Form 10-Q - Registrant: **Eli Lilly and Company, Indiana**[2](index=2&type=chunk) - Period Ended: **June 30, 2025**[2](index=2&type=chunk) - Filer Status: **Large accelerated filer**[5](index=5&type=chunk) - Common Stock Outstanding (as of August 4, 2025): **946,456,759 shares**[6](index=6&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section warns that forward-looking statements carry inherent risks and uncertainties, which may cause actual results to differ - Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ from those expressed, and investors should not place undue reliance on them[10](index=10&type=chunk) - Key risk factors include significant costs and uncertainties in pharmaceutical R&D, impact of acquisitions, intense competition, pricing pressures, regulatory actions, safety/efficacy concerns, intellectual property expiration, supply chain issues, reliance on third parties, risks from emerging technologies (e.g., AI), global macroeconomic conditions, foreign currency fluctuations, and litigation[10](index=10&type=chunk) [Trademarks and Trade Names](index=4&type=section&id=Trademarks%20and%20Trade%20Names) This section clarifies that all trademarks and trade names are property of their owners, and their use does not waive rights - All trademarks or trade names referred to in this report are the property of the company or their respective owners[13](index=13&type=chunk) - The use of trademarks and trade names without ® and ™ symbols is for convenience and should not be construed as waiving rights[13](index=13&type=chunk) [PART I. Financial Information](index=5&type=section&id=PART%20I.%20Financial%20Information) This part presents unaudited consolidated financial statements, management's discussion, notes, market risk, and controls [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This item provides unaudited consolidated financial statements, covering operations, comprehensive income, balance sheets, equity, and cash flows, and related notes [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) This section presents unaudited consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 Consolidated Condensed Statements of Operations (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :----------------------------- | :-------------- | :-------------- | :--------- | | Revenue | $15,557.7 | $11,302.8 | 37.6% | | Net income | $5,660.5 | $2,967.0 | 90.8% | | Diluted EPS | $6.29 | $3.28 | 91.8% | Consolidated Condensed Statements of Operations (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :----------------------------- | :-------------- | :-------------- | :--------- | | Revenue | $28,286.2 | $20,070.8 | 40.9% | | Net income | $8,419.8 | $5,209.9 | 61.6% | | Diluted EPS | $9.35 | $5.76 | 62.3% | - Acquired in-process research and development (IPR&D) charges significantly increased for the six-month period to **$1,725.5 million in 2025** from **$264.8 million in 2024**[16](index=16&type=chunk) [Consolidated Condensed Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income) This section presents unaudited consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024 Consolidated Condensed Statements of Comprehensive Income (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :--------------------- | :-------------- | :-------------- | :--------- | | Net income | $5,660.5 | $2,967.0 | 90.8% | | Other comprehensive income (loss) | $58.6 | $(79.0) | N/A | | Comprehensive income | $5,719.1 | $2,888.0 | 97.9% | Consolidated Condensed Statements of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :--------------------- | :-------------- | :-------------- | :--------- | | Net income | $8,419.8 | $5,209.9 | 61.6% | | Other comprehensive income (loss) | $605.9 | $(51.5) | N/A | | Comprehensive income | $9,025.7 | $5,158.4 | 74.9% | - Other comprehensive income (loss) shifted from a loss in 2024 to a gain in 2025, contributing to the overall increase in comprehensive income[18](index=18&type=chunk) [Consolidated Condensed Balance Sheets](index=7&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) This section presents unaudited consolidated balance sheets as of June 30, 2025, and December 31, 2024 Consolidated Condensed Balance Sheets (June 30, 2025 vs. December 31, 2024) | Asset Category | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (%) | | :----------------------------- | :----------------------- | :---------------------- | :--------- | | Total current assets | $49,854.0 | $32,739.7 | 52.3% | | Prepaid expenses | $18,019.8 | $8,340.5 | 116.0% | | Inventories | $11,013.8 | $7,589.2 | 45.1% | | Property and equipment, net | $20,529.7 | $17,102.4 | 20.0% | | Total assets | $100,922.6 | $78,714.9 | 28.2% | Consolidated Condensed Balance Sheets (Liabilities - June 30, 2025 vs. December 31, 2024) | Liability Category | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (%) | | :----------------------------- | :----------------------- | :---------------------- | :--------- | | Total current liabilities | $39,019.9 | $28,376.6 | 37.5% | | Sales rebates and discounts | $14,537.4 | $11,539.3 | 26.0% | | Short-term income taxes payable | $6,958.0 | $1,116.4 | 523.3% | | Long-term debt | $34,180.1 | $28,527.1 | 19.8% | | Total liabilities | $82,573.5 | $64,443.3 | 28.1% | - Total equity increased by **28.6% to $18,349.1 million** as of June 30, 2025[20](index=20&type=chunk) [Consolidated Condensed Statements of Shareholders' Equity](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Shareholders'%20Equity) This section presents unaudited consolidated statements of shareholders' equity for the six months ended June 30, 2025 Eli Lilly and Company Shareholders' Equity (June 30, 2025 vs. January 1, 2025) | Metric | June 30, 2025 (Millions) | Jan 1, 2025 (Millions) | | :----------------------------- | :----------------------- | :--------------------- | | Total Eli Lilly and Company shareholders' equity | $18,272.9 | $14,192.1 | | Net income | $8,419.8 | N/A | | Cash dividends declared | $(2,692.2) | N/A | | Other comprehensive income, net of tax | $605.9 | N/A | - The company repurchased **909 thousand shares** of common stock for **$692.2 million** during the three months ended June 30, 2025[22](index=22&type=chunk)[183](index=183&type=chunk) - As of June 30, 2025, **$13.11 billion** remained under the **$15.00 billion** share repurchase program authorized in December 2024[22](index=22&type=chunk)[24](index=24&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=10&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) This section presents unaudited consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 Consolidated Condensed Statements of Cash Flows (Six Months Ended June 30) | Cash Flow Category | 2025 (Millions) | 2024 (Millions) | Change (%) | | :----------------------------- | :-------------- | :-------------- | :--------- | | Net Cash Provided by Operating Activities | $4,752.5 | $2,632.2 | 80.

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Financial Data and Key Metrics Changes - Revenue grew 38% compared to Q2 2024, driven by key products including Evglis, Jaypirca, Kisunla, Mounjaro, Omvoh, Verzenio, and Zepbound [9][19] - Gross margin as a percentage of revenue was 85% in Q2, an increase of three percentage points year-over-year, primarily due to improved production costs and a favorable product mix [19] - Earnings per share increased 61% to $6.31, including a negative impact of $0.14 from acquired IPR&D charges [21] Business Line Data and Key Metrics Changes - Mounjaro posted $5.2 billion in global sales and became the U.S. market leader in total prescriptions within the type 2 diabetes incretin market [28][29] - Zepbound contributed significantly to sales, with over 1 million TRX in Q2, and accounted for approximately 20% of total U.S. prescriptions [32][86] - Eplis showed strong performance in atopic dermatitis, with total prescriptions nearly doubling since Q1 [23] Market Data and Key Metrics Changes - U.S. revenue increased 38%, driven by strong volume growth of Zepbound and Mounjaro, partially offset by an 8% decline in price [22] - Revenue in Europe grew 77% in constant currency, reflecting strong uptake of Mounjaro [22] - Japan revenue grew 7% in constant currency, driven by Mounjaro and Eplis, while China saw a 19% increase in revenue [22] Company Strategy and Development Direction - The company aims to submit orforglipron for regulatory approval globally to address the obesity challenge [8] - Continued investment in R&D is emphasized, with a focus on expanding the pipeline and increasing manufacturing capacity [11][14] - The company is committed to addressing drug pricing reform while ensuring patient access to medications [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and growth outlook for the company, raising revenue and earnings guidance for 2025 [12][35] - The management highlighted the importance of addressing patient safety concerns related to compounding and emphasized the need for regulatory action [72] - The company anticipates continued growth in the incretin market, with a focus on maintaining pricing strategies that reflect the value of their products [75] Other Important Information - The company announced the acquisition of SiteOne Therapeutics and Verve Therapeutics, expanding its portfolio in pain management and genetic medicines [14][54] - Manufacturing capacity has increased significantly, producing more than 1.6 times the amount of saleable incretin doses compared to 2024 [14][37] Q&A Session Summary Question: Context for orforglipron's weight loss profile compared to Wegovy - Management highlighted the efficacy of orforglipron, noting significant weight loss and improvements in key biomarkers, emphasizing its potential as a convenient oral option [61][66] Question: Pricing environment and compounding concerns - Management discussed the importance of addressing patient safety regarding compounding and indicated expectations for single-digit net pricing erosion while maintaining value [69][75] Question: Discontinuation rates and GI adverse events for orforglipron - Management confirmed that GI side effects were consistent with GLP-1 agonists, typically decreasing over time, with no significant differences noted [78][80] Question: Impact of Canadian generics on the market - Management indicated that the U.S. market remains strong, with continued growth in prescriptions despite potential competition from generics [83][86] Question: Evolution of U.S. employer coverage for anti-obesity medicines - Management confirmed that employer coverage has been steady, with ongoing efforts to improve access and simplify benefit designs [90][94] Question: Expectations for ATTAIN-two Phase III data - Management expressed confidence in the upcoming ATTAIN-two results, anticipating similar positive outcomes as seen in previous trials [97][100] Question: Differences in side effect profiles between studies - Management noted that side effect profiles can vary between populations, but overall confidence in the GLP-1 monotherapy profile remains high [103][106] Question: Gender split in the orforglipron study - Management reported a balanced gender split in the study population, with no notable differences impacting the results [111]

Group 1: Earnings Performance - Eli Lilly reported quarterly earnings of $6.31 per share, exceeding the Zacks Consensus Estimate of $5.61 per share, and up from $3.92 per share a year ago, representing an earnings surprise of +12.48% [1] - The company posted revenues of $15.56 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.48%, compared to year-ago revenues of $11.3 billion [2] - Over the last four quarters, Eli Lilly has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Eli Lilly shares have declined approximately 3.3% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $6.22 on revenues of $15.74 billion, and for the current fiscal year, it is $22.05 on revenues of $60.43 billion [7] Group 3: Industry Context - The Large Cap Pharmaceuticals industry, to which Eli Lilly belongs, is currently in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Performance - Total revenue reached $15.6 billion, a 38% increase compared to Q2 2024[12] - Key product revenue grew by 80% to $10.4 billion[12] - Non-GAAP earnings per share (EPS) increased by 61% to $6.31[12] - The company raised the midpoint of its revenue guidance by $1.5 billion for the full year[10] Product Performance - Lilly's U.S. incretin analogs market share increased to 57.0% of total prescriptions, with the market growing 41% year-over-year[10] - Mounjaro U.S. sales were $3.3 billion and international sales were $1.9 billion[65] - Zepbound U.S. sales were $3.4 billion and international sales were $1.5 million[68] - Verzenio U.S. sales increased 8% and international sales increased 19%[71] - Jaypirca Q2 2025 sales reached $123 million, with TRx increasing 85% compared to Q2 2024[25] Clinical Development - Orforglipron delivered weight loss of more than 27 lbs (12.4%) in ATTAIN-1[16] - Mounjaro demonstrated cardiovascular protection in SURPASS-CVOT, showing an 8% lower rate of MACE-3 events compared to Trulicity[16, 43]

Lilly Falls as Weight-Loss Pill Data Overshadows Sales Beat. Hear about the winners and losers on Wall Street on the Bloomberg Stock Movers report. https://t.co/nuWseLtpnj ...

August 7, 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) Lilly reports second-quarter 2025 financial results and raises guidance INDIANAPOLIS, August 7, 2025 - Eli Lilly and Company (NYSE: LLY) today announced its financial results for the second-quarter of 2025. "Lilly delivered another quarter of strong performance, achieving 38% year-over-year revenue growth driven by robust s ...

INDIANAPOLIS, Aug. 7, 2025 /PRNewswire/ --Eli Lilly and Company (NYSE: LLY) today announced its financial results for the second quarter of 2025. "Lilly delivered another quarter of strong performance, achieving 38% year-over-year revenue growth driven by robust sales of Zepbound and Mounjaro and sustained momentum across our key medicines," said David A. Ricks, Lilly chair and CEO. "Our pipeline continued to advance, highlighted by positive study results in oncology and cardiometabolic health—including Mou ...

Core Insights - Eli Lilly is expected to report earnings of $5.59 per share and sales of $14.7 billion on August 7, 2025, reflecting an increase from the previous year's earnings of $3.92 per share and sales of $11.3 billion [3] - Historically, Eli Lilly's stock has shown a pattern of negative one-day returns following earnings announcements, with a 56% decrease rate over the past five years and a median decline of -3.1% [2][7] Financial Performance - Eli Lilly has a market capitalization of $685 billion, with $49 billion in revenue, $20 billion in operating profits, and a net income of $11 billion over the past twelve months [4] - The company has recorded 18 earnings data points in the last five years, with 8 positive and 10 negative one-day returns, resulting in a 44% occurrence of positive returns [7] Trading Strategies - Traders may consider pre-earnings positioning based on historical probabilities and analyze immediate and medium-term returns post-earnings to guide their strategies [6] - A correlation analysis between short-term and medium-term returns can help traders identify suitable trades, particularly if 1D and 5D returns show strong correlation [8] Peer Performance - The performance of peers can influence Eli Lilly's stock reaction post-earnings, with historical data indicating that peer stock returns may impact pricing ahead of the earnings announcement [9]

Group 1 - Eli Lilly (LLY) experienced a significant Power Inflow at a price of $755.87, indicating potential upward movement in the stock [3][8] - The Power Inflow is interpreted as a bullish signal by traders, suggesting a possible entry point for those looking to capitalize on expected price increases [3][5] - Following the Power Inflow, the stock reached a high price of $769.49, resulting in returns of 1.8% and a close price of $769, yielding a return of 1.7% [8] Group 2 - Order flow analytics, which includes the analysis of buy and sell orders, helps traders make informed decisions by interpreting market conditions and identifying trading opportunities [5][7] - The Power Inflow typically occurs within the first two hours of market opening and is driven by institutional activity, influencing the stock's direction for the remainder of the trading day [6][7] - Incorporating effective risk management strategies is essential for traders to protect capital and navigate market uncertainties, enhancing the likelihood of long-term success [7]