Summary
Eli Lilly and Company (LLY) reported a strong increase in revenue for the nine months ended September 30, 2021, up 19% year-over-year to $20.3 billion, driven by higher volumes across key products and contributions from COVID-19 therapies. Despite revenue growth, net income and diluted EPS saw a decline of 5% and 5% respectively, primarily due to increased operating expenses, particularly in research and development for late-stage assets, and a significant debt extinguishment loss of $405.2 million. The company also incurred a substantial $435.1 million net inventory impairment charge for its COVID-19 antibodies due to changing demand and near-term expiry dates. Management has updated its full-year 2021 financial guidance, anticipating revenue between $27.2 billion and $27.6 billion, and EPS between $6.38 and $6.48, reflecting improved COVID-19 antibody revenue projections. Key product highlights include robust growth for Trulicity (up 29% YTD) and Taltz (up 21% YTD), while Alimta faces significant revenue erosion due to generic competition following patent expiries. The company continues to invest heavily in its late-stage pipeline, with approximately 45 candidates in clinical development, including promising advancements in areas like Alzheimer's disease (Donanemab) and Type 2 diabetes (Tirzepatide). The company's financial position remains solid, with cash and cash equivalents increasing and substantial unused credit facilities available.
Financial Highlights
52 data points| Revenue | $6.77B |
| Cost of Revenue | $1.43B |
| Gross Profit | $5.34B |
| R&D Expenses | $1.71B |
| SG&A Expenses | $1.58B |
| Interest Expense | $83.60M |
| Net Income | $1.11B |
| EPS (Basic) | $1.22 |
| EPS (Diluted) | $1.22 |
| Shares Outstanding (Basic) | 906.70M |
| Shares Outstanding (Diluted) | 910.80M |
Key Highlights
- 1Revenue increased by 19% year-over-year for the nine months ended September 30, 2021, reaching $20.3 billion, driven by strong volume growth in key products and COVID-19 therapies.
- 2Net income and diluted EPS decreased by 5% for the nine months ended September 30, 2021, impacted by higher operating expenses, particularly in R&D, and a $405.2 million debt extinguishment loss.
- 3A significant $435.1 million net inventory impairment charge was recognized for COVID-19 antibodies due to evolving demand and expiration dates.
- 4Key product Trulicity showed strong YTD revenue growth of 29%, while Alimta experienced a decline due to generic competition post-patent expiry.
- 5The company raised its full-year 2021 revenue guidance to $27.2 - $27.6 billion and its EPS guidance to $6.38 - $6.48.
- 6Significant investment in R&D continues, with approximately 45 pipeline candidates in clinical development, including advancements in Alzheimer's (Donanemab) and Type 2 diabetes (Tirzepatide).
- 7The company completed the acquisition of Prevail Therapeutics Inc. for approximately $747.4 million, strengthening its gene therapy pipeline.