Summary
Eli Lilly and Company's (LLY) second-quarter 2020 results show resilience despite the ongoing COVID-19 pandemic, which caused an estimated $250 million revenue impact due to delayed prescription trends and decreased customer buying. Revenue for the quarter was $5.50 billion, a slight decrease of 2% compared to the prior year, while the six-month period saw a 6% increase to $11.36 billion. Net income from continuing operations for the quarter rose by 6% to $1.41 billion, or $1.55 per diluted share, indicating strong operational performance. The company continues to invest heavily in its late-stage pipeline, with key developments like the U.S. approval and launch of Retevmo (selpercatinib) for certain cancers and progress in trials for treatments like tirzepatide for type 2 diabetes. Despite revenue headwinds from COVID-19, Lilly demonstrated effective cost management, with operating expenses decreasing by 5% for the quarter. The company's financial position remains robust, supported by $2.37 billion in cash and cash equivalents. Management is updating its full-year 2020 EPS guidance to a range of $6.48 to $6.68, while maintaining its revenue expectation of $23.7 billion to $24.2 billion. Key growth drivers are expected to include Trulicity, Taltz, Jardiance, and Verzenio, though patent expirations for products like Forteo and potential generic competition for others like Alimta and Humalog present ongoing challenges.
Financial Highlights
52 data points| Revenue | $5.50B |
| Cost of Revenue | $1.22B |
| Gross Profit | $4.28B |
| R&D Expenses | $1.39B |
| SG&A Expenses | $1.45B |
| Interest Expense | $88.30M |
| Net Income | $1.41B |
| EPS (Basic) | $1.56 |
| EPS (Diluted) | $1.55 |
| Shares Outstanding (Basic) | 907.20M |
| Shares Outstanding (Diluted) | 910.90M |
Key Highlights
- 1Revenue for Q2 2020 was $5.50 billion, a 2% decrease year-over-year, impacted by COVID-19. Six-month revenue increased 6% to $11.36 billion.
- 2Net income from continuing operations grew 6% to $1.41 billion ($1.55 per diluted share) for Q2 2020, showcasing operational efficiency.
- 3COVID-19 negatively impacted Q2 revenue by an estimated $250 million due to delayed prescriptions and decreased customer buying.
- 4The company advanced its late-stage pipeline with the U.S. approval and launch of Retevmo (selpercatinib) for certain cancers.
- 5Operating expenses for Q2 2020 decreased 5% to $2.84 billion, driven by lower marketing expenses.
- 6Eli Lilly updated its full-year 2020 EPS guidance to $6.48-$6.68, maintaining revenue expectations of $23.7-$24.2 billion.
- 7Significant patent expirations for products like Forteo and ongoing patent challenges for Alimta are noted risks for future revenue.