01—Abstract
Summary
Summary of the 10-K filed February 19, 2025. Cited figures are marked; the original filing is the authoritative source.
Eli Lilly and Company (LLY) reported a substantial increase in revenue for the fiscal year ending December 31, 2024, with total revenue reaching $45.04 billiona, a 32% increase over the prior year.
This growth was primarily driven by strong performance in key products like Mounjaro and Zepbound, which saw significant revenue gains, along with continued growth from Verzenio and Taltz. The company also experienced substantial net income growth of 102%, reaching $10.59 billionb, with diluted earnings per share rising to $11.71. This financial performance reflects increased volume and higher realized prices across its portfolio, particularly in the U.S. market.
Lilly continues to aggressively invest in its research and development pipeline, with approximately 55 new medicine candidates in clinical development or under regulatory review. Significant progress has been made in areas such as obesity and Alzheimer's disease, with Mounjaro/Zepbound and Donanemab (Kisunla) showing promising results and regulatory approvals.
The company also announced a new $15 billionc share repurchase program, demonstrating confidence in its future prospects and commitment to returning capital to shareholders. However, investors should note ongoing risks related to pricing pressures, regulatory changes (such as the Inflation Reduction Act), intellectual property challenges, and potential supply chain disruptions.
02—Key points
Key Highlights
- Revenue surged by 32% to $45.04 billion in 2024, driven by strong performance of Mounjaro, Zepbound, Verzenio, and Taltz.
- Net income more than doubled, increasing by 102% to $10.59 billion, with diluted EPS reaching $11.71.
- The company's research and development pipeline remains robust with approximately 55 new medicine candidates in clinical development or under regulatory review, particularly in obesity and neuroscience.
- Mounjaro and Zepbound were significant revenue drivers, with Mounjaro revenue increasing by 124% and Zepbound generating $4.93 billion in its first full year of sales in the U.S.
- Trulicity revenue declined by 32% in the U.S. due to competitive dynamics and supply constraints.
- The company expanded its manufacturing capacity with significant capital expenditures and announced a new $15 billion share repurchase program in December 2024.
- The Inflation Reduction Act continues to be a key regulatory factor, with Jardiance selected for government-set pricing in Medicare starting in 2026, impacting pricing strategies.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 19, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $45.04B$34.12B | +32.0% |
| Cost of Revenue | $8.42B$7.08B | +18.9% |
| Gross Profit | $36.63B$27.04B | +35.4% |
| SG&A Expenses | $8.59B$7.40B | +16.1% |
| Net Income | $10.59B$5.24B | +102.1% |
| EPS (Basic) | $11.76$5.82 | +102.1% |
| EPS (Diluted) | $11.71$5.80 | +101.9% |
| Shares Outstanding (Basic) | 900.60M900.20M | 0.0% |
| Shares Outstanding (Diluted) | 904.10M903.30M | +0.1% |
05—Questions
Frequently Asked Questions
What were the main drivers of Eli Lilly's revenue growth in 2024?
Eli Lilly's revenue growth in 2024 was primarily driven by strong volume increases and, to a lesser extent, higher realized prices. Key products like Mounjaro and Zepbound, used for diabetes and obesity respectively, were major contributors. Verzenio (oncology) and Taltz (immunology) also showed significant growth, while Trulicity experienced a revenue decline due to competitive pressures and supply issues.
What is the status of Eli Lilly's R&D pipeline, especially for new blockbuster drugs?
Eli Lilly maintains a robust R&D pipeline with approximately 55 new medicine candidates in clinical development or under regulatory review. Notable advancements are in the obesity space with tirzepatide (Mounjaro/Zepbound) and orforglipron, and in neuroscience with donanemab (Kisunla) for early Alzheimer's disease, which has received regulatory approvals. The company continues to invest heavily across its therapeutic areas, including immunology and oncology.
How will the Inflation Reduction Act (IRA) impact Eli Lilly's business?
The IRA's provisions for government-set prices on certain high-spending drugs, starting with Medicare Part D and Part B, pose a significant factor. Jardiance has been selected for price negotiation, which will result in a substantial discount. Lilly anticipates that additional products will be subject to these price controls in the future, potentially accelerating revenue erosion prior to patent exclusivity loss. The company is also adapting to changes in Medicare Part D rebate programs.
What is Eli Lilly's capital allocation strategy, particularly regarding share repurchases and investments?
Eli Lilly is actively returning capital to shareholders through dividends and share repurchases. The company completed its $5 billion share repurchase program and authorized a new $15 billion program in December 2024. Lilly is also making substantial capital investments in expanding its global manufacturing capacity to meet anticipated demand and strategically acquiring businesses and technologies to enhance its product pipeline. These investments are crucial for future growth.
06—Continue