2024

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<p class="has-drop-cap">Eli Lilly &amp; Co. (NYSE: LLY) <a href="https://investor.lilly.com/news-releases/news-release-details/lilly-reports-q3-2024-financial-results-highlighted-strong" target="_blank" aria-label="reported (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">reported</a> its financial results for the third quarter of 2024. The company’s revenue for Q3 2024 surged by 20% to $11.44 billion, compared with $9.50 billion in Q3 2023.</p>
<p>This increase was largely attributed to the strong demand for Mounjaro and Zepbound, which contributed to a 15% rise in volume and a 6% increase in realized prices. Excluding the $1.42 billion revenue from the sale of rights for the olanzapine portfolio in Q3 2023, the revenue growth was even more impressive at 42%.</p>
<p>The company’s new products, including Ebglyss and Kisunla, reported a revenue increase of $3.07 billion, reaching $4.51 billion in Q3 2024. Mounjaro alone generated $3.11 billion in revenue, reflecting the strong market uptake.</p>
<p>Additionally, non-incretin revenue, which encompasses oncology, immunology, and neuroscience portfolios, grew by 17% compared to the previous year. This growth was further bolstered by the U.S. Food and Drug Administration’s approval of Ebglyss for atopic dermatitis and Kisunla for Alzheimer’s disease in Japan.</p>
<p>The company’s gross margin for Q3 2024 increased by 21% to $9.27 billion, representing 81% of revenue. This was primarily due to a favorable product mix and higher realized prices. <br><br>However, the company incurred significant research and development expenses, which rose by 13% to $2.73 billion, reflecting ongoing investments in its pipeline. Despite these expenses, the company’s net income reached $970.3 million, translating to an earnings per share (<a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow" class="deco-link">EPS</a>) of $1.07 on a reported basis and $1.18 on a non-GAAP basis.</p>
<h3 id="eli-lilly-reports-third-quarter-with-lukewarm-results">Eli Lilly Reports Third Quarter with Lukewarm Results</h3>
<p>Eli Lilly’s Q3 2024 performance exceeded several expectations but fell short in certain areas. The company’s reported EPS of $1.07 was below the anticipated EPS of $1.45. However, the non-GAAP EPS of $1.18, which excludes certain charges, indicates a closer alignment with market expectations. This discrepancy in EPS can be attributed to the $3.08 of acquired in-process research and development (IPR&amp;D) charges incurred during the quarter.</p>
<p>Revenue expectations for the quarter were set at $12.09 billion, yet the company reported $11.44 billion. This shortfall is primarily due to the absence of the olanzapine portfolio revenue, which accounted for $1.42 billion in Q3 2023. When excluding this factor, Eli Lilly’s revenue growth of 42% indicates a strong underlying performance, driven by its new products and increased demand for existing offerings.</p>
<p>The company’s efforts to expand its product pipeline and secure regulatory approvals have been fruitful, as evidenced by the successful launches of Ebglyss and Kisunla. The positive Phase 3 data for tirzepatide and other pipeline advancements have positioned Eli Lilly for continued growth, despite the shortfall in EPS and revenue expectations for the quarter.</p>
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<h3 id="eli-lilly-downgrades-eps-guidance-for-full-year-2024">Eli Lilly Downgrades EPS Guidance for Full Year 2024</h3>
<p>Eli Lilly has updated its full-year 2024 revenue guidance to a range of $45.4 billion to $46.0 billion, reflecting its strategic investments in increasing the supply of tirzepatide. This guidance is slightly lower than the previous range of $45.4 billion to $46.6 billion, indicating a cautious approach to managing demand and production capabilities. The company remains focused on balancing demand generation activities with supply continuity to ensure patient care.</p>
<p>The EPS guidance for 2024 has been adjusted downward to a range of $12.05 to $12.55 on a reported basis and $13.02 to $13.52 on a non-GAAP basis. This revision accounts for the $3.09 billion of acquired IPR&amp;D charges incurred through Q3 2024. Despite this adjustment, Eli Lilly continues to invest in its pipeline and expand its manufacturing footprint, as demonstrated by a $1.8 billion investment in Ireland and a $4.5 billion investment in Indiana for the Lilly Medicine Foundry.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<h3 id="br"><br></h3>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/eli-lilly-co-reports-third-quarter-with-1-18-eps-downgrades-guidance/">Eli Lilly &amp; Co. Reports Third Quarter with $1.18 EPS, Downgrades Guidance</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Eli Lilly & Co. Reports Third Quarter with $1.18 EPS, Downgrades Guidance

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