Summary
Eli Lilly and Company (LLY) reported strong financial results for the second quarter and first half of 2024, showcasing significant revenue and net income growth. Revenue surged by 36% year-over-year for the quarter and 31% for the first half, driven by robust sales of key products like Mounjaro®, Zepbound®, and Verzenio®. This growth was further bolstered by increased volume and higher realized prices, particularly in the U.S. market, and improved channel dynamics for their incretin medicines. Profitability also saw substantial improvement, with diluted earnings per share rising by 68% for both the quarter and the first half. This strong performance was supported by an improved gross margin, reflecting favorable pricing and product mix. While research and development and marketing, selling, and administrative expenses increased to support pipeline development and launches, the company maintained a healthy increase in net income. Eli Lilly also announced a proposed acquisition of Morphic Holding, Inc. for approximately $3.2 billion, indicating continued strategic investment in its pipeline. The company continues to invest heavily in expanding manufacturing capacity, particularly for its incretin medicines, though periodic supply tightness is still a consideration. The pipeline remains robust with numerous new medicine candidates in late-stage development across key therapeutic areas, including cardiometabolic health, immunology, neuroscience, and oncology. These developments, combined with strong financial performance, position Eli Lilly for continued growth.
Financial Highlights
49 data points| Revenue | $11.30B |
| Cost of Revenue | $2.17B |
| Gross Profit | $9.13B |
| SG&A Expenses | $2.12B |
| Net Income | $2.97B |
| EPS (Basic) | $3.29 |
| EPS (Diluted) | $3.28 |
| Shares Outstanding (Basic) | 900.90M |
| Shares Outstanding (Diluted) | 904.20M |
Key Highlights
- 1Revenue increased by 36% to $11.3 billion for the three months ended June 30, 2024, and by 31% to $20.1 billion for the six months ended June 30, 2024.
- 2Diluted Earnings Per Share (EPS) grew by 68% to $3.28 for the three months ended June 30, 2024, and by 68% to $5.76 for the six months ended June 30, 2024.
- 3Mounjaro® and Zepbound® sales were primary drivers of revenue growth, with Mounjaro® showing substantial increases both domestically and internationally.
- 4Verzenio® demonstrated strong performance with significant revenue increases driven by higher demand.
- 5Trulicity® experienced revenue declines due to supply constraints and competitive dynamics, as well as strategic management of demand amidst tight supply in international markets.
- 6The company announced an agreement to acquire Morphic Holding, Inc. for approximately $3.2 billion to expand its pipeline.
- 7Gross margin improved to 80.8% for both the quarter and the first half, up from 78.3% and 77.5% respectively in the prior year, driven by higher realized prices and favorable product mix.