Eli Lilly and Company, founded in 1876 by Eli Lilly, is a major American pharmaceutical company based in Indianapolis, Indiana. The company is known for creating important medicines like Prozac, Cymbalta, and Humalog. Eli Lilly operates worldwide, selling products in about 125 countries, and focuses on treating diabetes, cancer, and immune system disorders.
Also, the company invests a lot in research and development, leading to significant medical advancements. They were among the first to produce human insulin and the polio vaccine. Despite challenges like legal issues and competition, Eli Lilly remains a key player in the pharmaceutical industry, committed to making life-changing medicines.
Eli Lilly Fiscal Q4 2024
Eli Lilly (LLY) reported revenue of $13.53 billion for the fourth quarter, surpassing forecasts. This strong performance highlights the company’s success in the market.
For the entire year, Lilly also achieved a profit of $10.59 billion, which translates to $11.71 per share.
Additionally, the company’s annual revenue was reported at $45.04 billion, indicating significant growth and profitability over the year.
Highlights
- Revenue: Q4 2024 revenue grew by 45% to $13.53 billion, thanks to strong sales of Mounjaro and Zepbound.
- Other product revenue increased by 20%.
- New Approvals: Zepbound was approved in the U.S. for sleep apnea in adults, and Omvoh was approved for Crohn’s disease.
- Earnings: Q4 2024 earnings per share (EPS) rose to $4.88 (up 102%) and $5.32 (up 114% non-GAAP).
Key updates
- New Approvals: FDA approvals for Zepbound and Omvoh, and Kisunla approved in China.
- Positive Trial Results: Significant findings from trials for Zepbound, pirtobrutinib, and muvalaplin.
- Business Developments: Plans to acquire Scorpion Therapeutics’ program, a $3 billion investment in a Wisconsin facility. Also, the company has a $15 billion share repurchase program with a 15% dividend increase.
Guidance
The effective tax rate for 2025 is expected to be about 16%.
Also, earnings per share (EPS) for 2025 are expected to be between $22.05 and $23.55 on a reported basis, and between $22.50 and $24.00 on a non-GAAP basis.
Boards Statements
David A. Ricks, Lilly’s chair and CEO, stated that 2024 was a highly successful year for the company.
He highlighted the major data readouts for tirzepatide in treating chronic diseases associated with obesity, significant investments in expanding their manufacturing capacity, and the launch of Kisunla and Ebglyss. These factors are seen as key drivers of Lilly’s long-term balanced growth outlook.
According to Ricks, the company enters 2025 with tremendous momentum. Also, they anticipate strong financial performance and several important Phase 3 readouts, which, if positive, will further accelerate their long-term growth.
Impact on the Stock Market
The earnings report led to a 3% increase in Lilly’s stock. This rise was because the company reported strong financial results, including higher-than-expected revenue and earnings. Additionally, there were positive updates on drug approvals and pipeline progress, which made investors optimistic and boosted the stock price.
