Summary
Eli Lilly and Company (LLY) reported strong revenue growth in 2021, driven primarily by increased sales volumes across key therapeutic areas like diabetes and immunology, alongside contributions from COVID-19 therapies. Despite a notable increase in operating expenses, particularly in research and development for late-stage assets, the company's gross margin remained robust. However, net income and earnings per share (EPS) saw a decline compared to 2020, largely due to significant charges, including an inventory impairment for COVID-19 antibodies and debt extinguishment costs, which offset the revenue gains. The company's pipeline remains a key focus, with approximately 45 new medicine candidates in clinical development or under regulatory review across diabetes, immunology, neuroscience, and oncology. Key late-stage developments include submissions for Tirzepatide for type 2 diabetes and Donanemab for Alzheimer's disease. Investors should note the ongoing patent expirations for established products like Alimta and Forteo, which are expected to lead to revenue erosion due to generic competition, particularly in the U.S. for Alimta in 2022. Lilly is actively managing its capital structure, with significant investments planned for new manufacturing facilities and ongoing share repurchases.
Financial Highlights
53 data points| Revenue | $28.32B |
| Cost of Revenue | $7.31B |
| Gross Profit | $21.01B |
| R&D Expenses | $6.93B |
| SG&A Expenses | $6.43B |
| Interest Expense | $339.80M |
| Net Income | $5.58B |
| EPS (Basic) | $6.15 |
| EPS (Diluted) | $6.12 |
| Shares Outstanding (Basic) | 906.96M |
| Shares Outstanding (Diluted) | 911.68M |
Key Highlights
- 1Revenue increased by 15% to $28.3 billion in 2021, primarily driven by volume growth in key products like Trulicity, Taltz, Jardiance, and Verzenio, as well as significant sales from COVID-19 antibodies.
- 2Operating expenses rose by 10% to $13.5 billion, largely due to increased development expenses for late-stage pipeline assets.
- 3Net income decreased by 10% to $5.6 billion, and diluted EPS fell by 10% to $6.12, impacted by higher operating expenses and notable one-time charges.
- 4The company's robust late-stage pipeline includes approximately 45 new medicine candidates, with key submissions for Tirzepatide (diabetes) and Donanemab (Alzheimer's disease) underway.
- 5Significant patent expiries are noted for Alimta and Forteo, with Alimta facing expected rapid revenue decline in the U.S. in 2022 due to generic competition.
- 6The company made strategic acquisitions in 2021, including Prevail Therapeutics, to bolster its gene therapy capabilities.
- 7Lilly demonstrated strong cash flow from operations, increasing to $7.3 billion, and continued to return capital to shareholders through dividends and share repurchases.