Summary
Eli Lilly and Company (LLY) reported Q1 2016 revenue of $4.87 billion, a 5% increase year-over-year, primarily driven by volume growth in the U.S. and internationally. Despite revenue growth, net income decreased by 17% to $440.1 million ($0.41 diluted EPS) compared to $529.5 million ($0.50 diluted EPS) in Q1 2015. This decline was significantly impacted by a $203.9 million charge related to the Venezuelan financial crisis and deterioration of the bolívar, along with higher research and development expenses and asset impairment charges. Key product drivers included strong performance from Trulicity and Erbitux (especially in the U.S. post-acquisition of commercialization rights), along with established products like Cialis and Humulin showing growth. However, the company faces significant headwinds from upcoming patent expirations for major drugs such as Alimta, Strattera, and Cialis, which are expected to lead to substantial revenue declines. Lilly is actively managing its pipeline with several new molecular entities (NMEs) in late-stage development, including baricitinib for rheumatoid arthritis which was submitted for regulatory review.
Financial Highlights
53 data points| Revenue | $4.87B |
| Cost of Revenue | $1.32B |
| Gross Profit | $3.54B |
| R&D Expenses | $1.22B |
| SG&A Expenses | $1.47B |
| Operating Expenses | $2.69B |
| Interest Expense | $43.40M |
| Net Income | $440.10M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 1.06B |
| Shares Outstanding (Diluted) | 1.06B |
Key Highlights
- 1Revenue increased by 5% to $4.87 billion, driven by strong U.S. performance and international volume growth.
- 2Net income decreased by 17% to $440.1 million, largely due to a significant charge related to the Venezuelan financial crisis and increased R&D expenses.
- 3Diluted EPS fell to $0.41 from $0.50 in the prior year's quarter.
- 4The company recognized a $203.9 million charge related to the Venezuelan bolívar's deterioration.
- 5Research and development expenses increased by 17% to $1.22 billion, driven by late-stage clinical trial costs, including milestone payments for baricitinib.
- 6Several key products face upcoming patent expirations (Alimta, Strattera, Cialis), posing a significant future revenue risk.
- 7New drug approvals and submissions include Taltz (ixekizumab) for psoriasis and baricitinib for rheumatoid arthritis.