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10-QPeriod: Q2 FY2022

ELI LILLY & Co Quarterly Report for Q2 Ended Jun 30, 2022

Filed August 4, 2022For Securities:LLY

Summary

Eli Lilly and Company (LLY) reported its financial results for the second quarter and first half of 2022. For the three months ended June 30, 2022, revenue was $6.49 billion, a decrease of 4% compared to the prior year, impacted by lower realized prices and foreign exchange rates, though partially offset by increased volume. Net income for the quarter was $952.5 million, or $1.05 per diluted share, a decrease from $1.39 billion ($1.53 per diluted share) in the same period last year. For the first six months of 2022, revenue increased by 6% to $14.30 billion, while net income saw a modest increase of 4% to $2.86 billion, or $3.16 per diluted share. The company's performance was influenced by several factors, including strong volume growth in key products like Trulicity, Taltz, and Verzenio, which helped drive the year-to-date revenue increase. However, the decline in revenue for the quarter was significantly impacted by the substantial decrease in sales of COVID-19 antibodies and the ongoing generic competition for Alimta. Research and development expenses saw an increase, reflecting continued investment in late-stage assets. The company also noted substantial charges related to acquired in-process R&D and development milestones, primarily associated with a buy-out of future obligations for a PI3Kα inhibitor.

Financial Statements
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Key Highlights

  • 1Revenue for the three months ended June 30, 2022, was $6.49 billion, a 4% decrease year-over-year, primarily due to lower prices and foreign exchange rates, partially offset by volume increases.
  • 2Revenue for the six months ended June 30, 2022, increased 6% to $14.30 billion, driven by higher volume.
  • 3Diluted EPS for Q2 2022 was $1.05, down from $1.53 in Q2 2021, while H1 2022 EPS was $3.16, up from $3.01 in H1 2021.
  • 4Key growth drivers included increased volume for Trulicity, Verzenio, Taltz, and Jardiance.
  • 5Revenue from COVID-19 antibodies significantly decreased year-over-year, impacting overall quarterly performance.
  • 6Acquired IPR&D and development milestones were substantial in Q2 and the first half of 2022, driven by buy-outs and a Priority Review Voucher.
  • 7The company continues to invest in its late-stage pipeline, with R&D expenses increasing by 8% in Q2 2022.

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