Summary
Eli Lilly and Company reported robust revenue growth of 16% for the first quarter of 2021, reaching $6.81 billion, up from $5.86 billion in the prior year period. This increase was primarily driven by higher sales volumes, particularly from its COVID-19 antibody treatments and key growth products like Trulicity and Verzenio. Despite the strong top-line performance, net income saw a decline of 7% to $1.36 billion, translating to diluted EPS of $1.49, down from $1.60 in Q1 2020. This decrease in profitability is largely attributable to significant increases in research and development expenses, higher acquired in-process R&D charges related to strategic acquisitions, and increased asset impairment and restructuring costs. The company's strategic acquisitions of Prevail Therapeutics and Dermira are beginning to impact the financial statements, with substantial acquired in-process R&D recognized in the current quarter. While the company is managing its liquidity effectively, with cash and cash equivalents at $3.00 billion, investors should note the impact of increased R&D spending on future growth and the ongoing challenges related to patent expirations for key products like Alimta.
Financial Highlights
50 data points| Revenue | $6.81B |
| Cost of Revenue | $1.88B |
| Gross Profit | $4.93B |
| R&D Expenses | $1.67B |
| SG&A Expenses | $1.58B |
| Interest Expense | $87.80M |
| Net Income | $1.36B |
| EPS (Basic) | $1.49 |
| EPS (Diluted) | $1.49 |
| Shares Outstanding (Basic) | 908.80M |
| Shares Outstanding (Diluted) | 912.40M |
Key Highlights
- 1Revenue increased by 16% to $6.81 billion in Q1 2021, driven by strong volume growth and COVID-19 antibody sales.
- 2Net income decreased by 7% to $1.36 billion, with diluted EPS falling to $1.49 from $1.60 year-over-year.
- 3Research and development expenses rose significantly, up 21% to $1.68 billion, largely due to investments in COVID-19 therapies and late-stage assets.
- 4Acquired in-process R&D charges increased substantially to $299.3 million from $52.3 million, reflecting recent acquisitions.
- 5Asset impairment, restructuring, and other special charges increased to $211.6 million from $59.9 million, primarily due to the decision to sell Qbrexza and integration costs from the Prevail acquisition.
- 6Key product Trulicity showed strong performance with revenue up 18% to $1.45 billion globally.
- 7The company updated its 2021 financial guidance, anticipating full-year EPS between $7.03 and $7.23 and revenue between $26.6 billion and $27.6 billion.