Eli Lilly and Company (LLY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 42% year-over-year excluding the prior year’s olanzapine portfolio sale, driven by Mounjaro and Zepbound, with new product revenue up $3.07B to $4.51B and non-incretin revenue up 17%.

• U.S. prescription volume for Mounjaro and Zepbound grew 25% sequentially; all doses now available for order.

• Key regulatory approvals included Ebglyss in the U.S. for atopic dermatitis and Kisunla in Japan and Great Britain for Alzheimer's.

• Positive late-stage clinical data for tirzepatide, donanemab, imlunestrant, and lebrikizumab; significant R&D and business development investments.

• Closed acquisition of Morphic Therapeutics, adding oral integrin assets to the immunology pipeline.

Financial highlights

• Q3 2024 total revenue: $11.44B, up 20% year-over-year; YTD 2024 revenue: $31.51B, up 27%.

• Gross margin as a percent of revenue: 81.0% (reported), 82.2% (non-GAAP), benefiting from favorable product mix and higher realized prices.

• R&D expenses rose 13% to $2.73B, and SG&A increased 16% to $2.10B, reflecting investment in pipeline and new launches.

• Q3 2024 net income: $970.3M (reported), $1.06B (non-GAAP); EPS: $1.07 (reported), $1.18 (non-GAAP), both including $3.08 per share of acquired IPR&D charges.

• U.S. revenue up 46% to $7.81B; Europe revenue up 39% in constant currency; rest of world up 45%.

Outlook and guidance

• 2024 revenue guidance updated to $45.4B–$46.0B; midpoint implies 50% Q4 year-over-year growth.

• EPS expected at $12.05–$12.55 (reported) and $13.02–$13.52 (non-GAAP), reflecting $3.09B in acquired IPR&D charges through Q3 2024.

• Gross margin minus OPEX as a percent of revenue expected at 36%–38% (reported) and 37%–39% (non-GAAP); tax rate guidance now approximately 17%.

• Accelerating demand-generation activities as supply constraints ease, with new international launches expected to contribute to Q4 growth.