Eli Lilly and Company (LLY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 36% year-over-year to $11.3 billion, driven by strong demand for Mounjaro, Zepbound, and Verzenio, with new products contributing nearly $3.5 billion in growth compared to last year.

• U.S. demand for incretin medicines remained robust, with supply improvements and channel dynamics supporting future outlook.

• Key pipeline milestones included FDA approval of Kisunla for Alzheimer's, Jaypirca approval in Japan, and positive phase III results for tirzepatide in heart failure and sleep apnea.

• Manufacturing expansion continues, with an additional $5.3 billion investment in Indiana, bringing total U.S. and Europe facility investments to over $18 billion since 2020.

• Leadership changes included the resignation of the CFO and new appointments in quality and compliance roles.

Financial highlights

• Q2 2024 revenue: $11.3 billion, up 36% year-over-year; excluding Baqsimi rights sale, revenue grew 46%.

• Gross margin rose to 82% (non-GAAP) from 79.8% in Q2 2023, benefiting from favorable product mix and higher prices.

• Operating income increased 90% year-over-year to $4.3 billion (non-GAAP); EPS reached $3.92 (non-GAAP), up 86%.

• U.S. revenue grew 42%, with volume growth of 27% and realized price increase of 15%.

• Zepbound sales exceeded $1.2 billion in Q2; Mounjaro global sales were $3.1 billion.

Outlook and guidance

• Full-year 2024 revenue guidance raised by $3 billion to $45.4–$46.6 billion, reflecting strong performance and improved supply clarity.

• EPS guidance updated to $15.10–$15.60 (reported) and $16.10–$16.60 (non-GAAP), both including $0.24 of acquired IPR&D charges through Q2.

• Gross margin minus OPEX as a percent of revenue expected at 36–38% (reported) and 37–39% (non-GAAP); tax rate guidance at approximately 15%.

• Expected production of salable incretin doses in H2 2024 to be at least 1.5x H2 2023; revenue growth for H2 2024 projected at 38%, with more significant growth in Q4.

• Guidance reflects improved production clarity and planned international launches.