On August 8, 2024, Eli Lilly and Co (LLY, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. The pharmaceutical giant, known for its focus on neuroscience, cardiometabolic, cancer, and immunology, reported a significant increase in revenue and earnings per share (EPS), surpassing analyst estimates.
Financial Highlights
Eli Lilly and Co (LLY, Financial) reported a 36% increase in revenue for Q2 2024, reaching $11.30 billion compared to $8.31 billion in Q2 2023. This growth was primarily driven by the strong performance of Mounjaro, Zepbound, and Verzenio. Excluding the $579.0 million revenue from the sale of rights for Baqsimi in Q2 2023, revenue increased by 46%.
Reported EPS for Q2 2024 was $3.28, a 68% increase from $1.95 in Q2 2023. On a non-GAAP basis, EPS increased by 86% to $3.92, inclusive of $0.14 of acquired in-process research and development (IPR&D) charges.
Key Metrics and Achievements
Gross margin for Q2 2024 increased by 40% to $9.13 billion, representing 80.8% of revenue, up from 78.3% in Q2 2023. This improvement was driven by a favorable product mix and higher realized prices. Research and development expenses rose by 15% to $2.71 billion, reflecting continued investments in the company's portfolio.
Net income on a reported basis was $2.97 billion, a 68% increase from $1.76 billion in Q2 2023. On a non-GAAP basis, net income was $3.54 billion, up 86% from $1.90 billion in the same period last year.
Product Performance
Mounjaro revenue surged to $3.09 billion in Q2 2024, compared to $979.7 million in Q2 2023. U.S. revenue for Mounjaro was $2.41 billion, reflecting strong demand and improved channel dynamics. Zepbound, launched in November 2023, generated $1.24 billion in U.S. revenue for Q2 2024.
Verzenio revenue increased by 44% to $1.33 billion, driven by increased demand both in the U.S. and internationally. However, Trulicity revenue declined by 31% to $1.25 billion due to competitive dynamics and supply constraints.
Guidance and Future Outlook
Eli Lilly and Co (LLY, Financial) raised its full-year revenue guidance by $3 billion, now expecting revenue in the range of $45.4 billion to $46.6 billion. The company also increased its reported EPS guidance to the range of $15.10 to $15.60 and non-GAAP EPS guidance to the range of $16.10 to $16.60.
David A. Ricks, Lilly's chair and CEO, commented,
Mounjaro, Zepbound and Verzenio led our strong financial performance in the second quarter as we advanced our manufacturing expansion agenda, and it is equally exciting to see the growth around the world of our medicines for cancer, neurological disorders and autoimmune diseases."
Conclusion
Eli Lilly and Co (LLY, Financial) demonstrated robust financial performance in Q2 2024, driven by key products and strategic investments. The company's ability to exceed analyst estimates and raise its full-year guidance underscores its strong market position and growth potential in the pharmaceutical industry.
Explore the complete 8-K earnings release (here) from Eli Lilly and Co for further details.
