Lilly(US:LLY)2025-10-30 15:00Financial Data and Key Metrics Changes - In Q3 2025, revenue grew by 54% compared to Q3 2024, driven by key products [4][9] - Gross margin as a percentage of revenue was 83.6%, an increase of 1.4 percentage points year-over-year [9] - Earnings per share increased to $7.02, compared to $1.18 in Q3 2024 [10] Business Line Data and Key Metrics Changes - Revenue from key products accounted for $12 billion in the quarter, with significant growth in immunology, oncology, and cardiometabolic health [11][12] - EVGLIS prescriptions increased by 41% in the U.S. for atopic dermatitis [11] - Mounjaro's total prescriptions grew by over 60% in the U.S. [14] Market Data and Key Metrics Changes - U.S. revenue increased by 45%, driven by strong volume growth of Zepbound and Mounjaro, despite a 15% decline in price [10] - International revenue increased by over 100% in constant currency, reflecting strong uptake of Mounjaro [10] - Japan, China, and the rest of the world saw constant currency revenue growth of 24%, 22%, and 51%, respectively [10] Company Strategy and Development Direction - The company is focused on expanding its manufacturing footprint and has announced plans for new facilities in the U.S. [6][7] - The strategy includes pursuing multiple pathways to market for Orforglipron, aiming for rapid patient access [43] - The company is committed to innovation and execution, with a robust pipeline and ongoing investments in R&D [60][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong performance and market share gains, particularly in the incretin analogs market [4][9] - The company raised its revenue and earnings per share guidance for the year, anticipating full-year revenue between $63 billion and $63.5 billion [16] - Management highlighted the importance of transparency in pricing and the potential impact of recent changes in PBM models on market dynamics [73] Other Important Information - The company distributed $1.3 billion in dividends and executed approximately $700 million in share repurchases during the quarter [8] - Significant progress was made in R&D, with multiple positive Phase 3 trial results announced [17][20] Q&A Session Summary Question: Comments on Orforglipron and National Priority Review voucher program - Management indicated interest in getting Orforglipron to patients quickly and is pursuing various strategies for market entry [43] Question: Insights on Mounjaro's international ramp - Management noted strong performance in new markets and emphasized the importance of patient activation for obesity treatment [52] Question: Market dynamics and competitor behavior - Management expressed confidence in their competitive position and highlighted ongoing investments in R&D to maintain leadership [60][62] Question: Pricing and volume dynamics for Orforglipron - Management discussed the importance of direct-to-consumer platforms and the potential for significant market expansion with Orforglipron [115]