Summary
Eli Lilly and Company (LLY) reported a significant increase in revenue for the third quarter of 2023, driven by strong sales of key products like Mounjaro® and Verzenio®, alongside revenue from the divestiture of the olanzapine portfolio. Despite the revenue growth, the company reported a net loss for the quarter, primarily due to substantial acquired in-process research and development (IPR&D) charges related to recent acquisitions, as well as increased research and development and marketing expenses. For the nine-month period ending September 30, 2023, revenue also saw a healthy increase, though net income and diluted EPS declined year-over-year. This decline is largely attributed to the same factors impacting the quarterly results: significant IPR&D expenses and higher operating costs, partially offset by robust top-line growth. The company continues to invest heavily in its late-stage pipeline, with numerous promising candidates in development across various therapeutic areas, including diabetes, obesity, immunology, neuroscience, and oncology.
Financial Highlights
50 data points| Revenue | $9.50B |
| Cost of Revenue | $1.86B |
| Gross Profit | $7.64B |
| SG&A Expenses | $1.80B |
| Interest Expense | $124.60M |
| Net Income | -$57.40M |
| EPS (Basic) | $-0.06 |
| EPS (Diluted) | $-0.06 |
| Shares Outstanding (Basic) | 899.80M |
| Shares Outstanding (Diluted) | 899.80M |
Key Highlights
- 1Revenue for the three months ended September 30, 2023, surged by 37% to $9.5 billion, compared to $6.9 billion in the prior year period. This growth was propelled by strong Mounjaro® and Verzenio® sales, and the divestiture of the olanzapine portfolio.
- 2For the nine months ended September 30, 2023, revenue increased by 17% to $24.8 billion, up from $21.2 billion in the same period last year, driven by increased volume.
- 3The company reported a net loss of $57.4 million for the third quarter of 2023, a significant shift from a net income of $1.5 billion in the prior year quarter, primarily due to a substantial increase in acquired in-process R&D charges ($2.98 billion in Q3 2023 vs. $62.4 million in Q3 2022).
- 4Diluted earnings per share (EPS) for the third quarter were a loss of $0.06, compared to earnings of $1.61 in the prior year quarter. For the nine months, diluted EPS decreased to $3.38 from $4.76.
- 5Research and development (R&D) expenses increased by 34% to $2.4 billion for the quarter and by 30% to $6.8 billion for the nine months, reflecting continued investment in late-stage assets and early-stage research.
- 6The company completed several strategic acquisitions in the third quarter, including DICE Therapeutics, Versanis Bio, and Emergence Therapeutics, for an aggregate of $2.98 billion, significantly contributing to the acquired IPR&D charges.
- 7Eli Lilly continues to expand manufacturing capacity for its key products, particularly incretin medicines like Mounjaro® and Trulicity®, to meet strong global demand, despite anticipating persistent supply challenges in the near term.