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ELI LILLY & Co 8-K Report, Financial Results (Feb 6, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 6, 2024
Period End
February 6, 2024
Security
LLY
In the record · 2016–202610-K1110-Q328-K110

LLY filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 110 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Mar ’19Mar ’19
  2. Leadership change8-K · Aug ’21Aug ’21
  3. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 8-K filed February 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Eli Lilly reported strong Q4 2023 results on February 6, 2024, with revenue up 28% year-over-year to $9.35 billiona, driven mainly by a 16% increase in realized prices and an 11% increase in volume.

Growth was led by Mounjaro, which generated $2.21 billionb in Q4 revenue versus $279 million a year earlier, and by Verzenio, Jardiance and Taltz. Reported EPS rose 13% to $2.42 and non-GAAP EPS rose 19% to $2.49, both after absorbing $0.62 per share of acquired IPR&D charges. Gross margin expanded to 80.9% of revenue on a reported basis, reflecting higher realized prices.

The filing also notes the sharp decline in Trulicity (down 14%) and Humalog (down 33%), and that Lilly expects incretin demand to outpace supply through 2024. For full-year 2024, Lilly guided to revenue of $40.4 billion to $41.6 billionc, reported EPS of $11.80 to $12.30 and non-GAAP EPS of $12.20 to $12.70. The guidance excludes any future acquired IPR&D charges, which management said it will update each quarter as they are incurred.

Management also introduced a new operating-expense ratio metric, expected at 30% to 32% reported and 31% to 33% non-GAAP, and expects an effective tax rate of about 14%. Other expense is projected at $400 million to $500 milliond, mainly from higher interest expense.

Pipeline and corporate developments during the quarter included FDA approval of Zepbound for obesity, accelerated approval of Jaypirca in CLL/SLL, positive Phase 2 SYNERGY-NASH data for tirzepatide in MASH, and a negative Phase 3 CYCLONE-2 readout for Verzenio in prostate cancer. The company also completed the POINT Biopharma and Mablink acquisitions, announced a $2.5 billion injectable manufacturing site in Germany, and raised its quarterly dividend by 15%, the sixth consecutive year of that size of increase.

02—Key points

Key Highlights

  1. Q4 2023 revenue rose 28% to $9.35 billion, with U.S. revenue up 39% to $6.46 billion and outside-U.S. revenue up 10% to $2.90 billion.
  2. Mounjaro became a major growth driver, with Q4 revenue of $2.21 billion versus $279.2 million in Q4 2022; full-year 2023 Mounjaro revenue reached $5.16 billion.
  3. Reported EPS grew 13% to $2.42 and non-GAAP EPS grew 19% to $2.49, both including $0.62 of acquired IPR&D charges.
  4. Gross margin reached 80.9% of revenue on a reported basis (up 2.1 points), driven primarily by higher realized prices.
  5. 2024 guidance calls for revenue of $40.4 to $41.6 billion and non-GAAP EPS of $12.20 to $12.70, excluding any future acquired IPR&D charges.
  6. Trulicity sales declined 14% in Q4 and Humalog fell 33%, reflecting pricing pressure and supply-related volume constraints.
  7. Lilly expects incretin demand to outpace supply in 2024 as manufacturing capacity expansion takes time to come online, and it announced a $2.5 billion injectable plant in Germany.

03—Questions

Frequently Asked Questions

  1. What drove Lilly's strong Q4 2023 revenue growth?

    Revenue rose 28% to $9.35 billion. About 16 percentage points came from higher realized prices, mostly due to Mounjaro in the U.S. where reduced savings-card utilization and a one-time favorable change in rebate and discount estimates lifted net price. Volume contributed 11 points, led by Mounjaro, Zepbound, Verzenio, Jardiance and Taltz.

  2. How did Lilly's earnings compare with last year, and what affected them?

    Reported EPS was $2.42, up 13%, and non-GAAP EPS was $2.49, up 19%. Both figures absorbed $0.62 per share of acquired IPR&D charges, mainly from the Mablink acquisition and the Beam Therapeutics deal, versus $0.23 a year earlier. Higher revenue and gross margin offset higher R&D (up 28%) and marketing and administrative spending (up 17%).

  3. What is Lilly's 2024 outlook?

    Lilly guided to 2024 revenue of $40.4 to $41.6 billion, reported EPS of $11.80 to $12.30, and non-GAAP EPS of $12.20 to $12.70. Growth is expected to come mainly from New Products, partly offset by continued Trulicity decline. Guidance excludes future acquired IPR&D charges, which will be reflected in quarterly updates. The company expects an effective tax rate of about 14% and other expense of $400 to $500 million.

  4. What are the main risks or weak spots highlighted in the filing?

    Trulicity revenue fell 14% in Q4 and is expected to keep declining, with intermittent order-fulfillment delays. Humalog revenue dropped 33% due to list price cuts. Lilly also disclosed a failed Phase 3 CYCLONE-2 trial for Verzenio in prostate cancer. Supply constraints could limit volume, since demand for incretins is expected to exceed supply in 2024, and the filing lists pricing pressure and generic competition among its risk factors.

  5. What pipeline and corporate developments occurred during the quarter?

    The FDA approved Zepbound for adults with obesity or overweight with weight-related comorbidities, and Jaypirca received accelerated approval for CLL/SLL. Phase 2 SYNERGY-NASH data showed up to 74% of tirzepatide patients achieved MASH resolution without fibrosis worsening, versus about 13% on placebo. Lilly completed the POINT Biopharma and Mablink acquisitions, announced a $2.5 billion German injectable plant, and raised its quarterly dividend 15%.

04—Continue

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