Eli Lilly and Company (LLY) Bundle
A Brief History of Eli Lilly and Company
Eli Lilly and Company (NYSE: LLY) has a storied history that reflects its evolution as a leader in the pharmaceutical industry. Founded in 1876 by Colonel Eli Lilly in Indianapolis, Indiana, the company has grown from a small manufacturing operation into a global powerhouse in the biopharmaceutical sector.
Recent Developments (2024)
As of September 30, 2024, Eli Lilly reported a significant increase in revenue, amounting to $31.51 billion for the nine months ended September 30, 2024, compared to $24.77 billion for the same period in 2023, marking a 27% increase year-over-year.
Net income for the same period reached $6.18 billion, up from $3.05 billion in the prior year. Earnings per share (diluted) were reported at $6.83 compared to $3.38 in 2023.
Financial Position
As of September 30, 2024, Eli Lilly's total assets were valued at $75.61 billion, up from $64.01 billion at the end of 2023. The company’s total debt rose to $31.12 billion, an increase of $5.89 billion compared to $25.23 billion at the end of 2023.
| Financial Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $75.61 billion | $64.01 billion |
| Total Debt | $31.12 billion | $25.23 billion |
| Net Income | $6.18 billion | $3.05 billion |
| Revenue | $31.51 billion | $24.77 billion |
Market Performance
Eli Lilly's stock performance has remained robust. As of September 30, 2024, the company maintained a strong market position, bolstered by successful product launches and a diversified pipeline. The company's market capitalization was approximately $330 billion.
Research and Development Investments
In 2024, Eli Lilly increased its research and development (R&D) expenses to $7.97 billion, reflecting an 18% increase from $6.75 billion in 2023. This investment emphasizes the company's commitment to innovation and the development of new therapies.
Shareholder Returns
During the nine months ended September 30, 2024, Eli Lilly paid out $3.51 billion in dividends, translating to $3.90 per share. The company also repurchased shares amounting to $521.1 million under its $5.00 billion share repurchase program.
Acquisitions and Strategic Moves
In 2024, Eli Lilly acquired Morphic for approximately $2.67 billion, funding the acquisition through debt issuance. This acquisition is part of Eli Lilly's strategy to enhance its product offerings and expand its market reach.
Conclusion
The strategic maneuvers and financial resilience of Eli Lilly continue to position the company favorably within the pharmaceutical industry as of 2024. The focus on R&D, coupled with solid financial performance and shareholder returns, underscores Eli Lilly's ongoing commitment to growth and innovation.
A Who Owns Eli Lilly and Company (LLY)
Major Shareholders
As of 2024, Eli Lilly and Company (LLY) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The top shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares Owned (millions) | Estimated Value ($ billion) |
|---|---|---|---|
| Vanguard Group, Inc. | 8.2% | 77.7 | 23.2 |
| BlackRock, Inc. | 7.5% | 71.3 | 21.4 |
| State Street Corporation | 4.4% | 42.0 | 12.6 |
| Wellington Management Group LLP | 3.9% | 37.2 | 11.2 |
| FMR LLC (Fidelity) | 3.2% | 30.5 | 9.1 |
Insider Ownership
Insider ownership at Eli Lilly and Company includes shares held by executives and board members, reflecting their confidence in the company's future. As of 2024, insider ownership is approximately:
| Insider Name | Position | Shares Owned (thousands) |
|---|---|---|
| David Ricks | Chairman and CEO | 350 |
| Alfredo A. R. de Jesus | Executive Vice President | 120 |
| Daniel Skovronsky | Chief Scientific Officer | 75 |
Stock Performance and Market Capitalization
As of September 30, 2024, Eli Lilly's market capitalization was approximately $284 billion, with stock prices reaching $298.70 per share. The stock has shown significant growth compared to previous years, reflecting strong financial performance and investor confidence.
Recent Financial Highlights
For the nine months ended September 30, 2024, Eli Lilly reported:
- Revenue: $31.51 billion
- Net Income: $6.18 billion
- Earnings per Share (EPS): $6.83
Share Repurchase Program
As of September 30, 2024, Eli Lilly has approximately $1.98 billion remaining under its $5 billion share repurchase program initiated in May 2021. In the third quarter of 2024, the company repurchased shares worth $521.1 million.
Eli Lilly and Company (LLY) Mission Statement
Mission Statement Overview
The mission of Eli Lilly and Company is to create medicines that help people live longer, healthier lives. The company is dedicated to improving patient outcomes through innovation and a commitment to high-quality healthcare solutions.
Financial Performance
As of the third quarter of 2024, Eli Lilly reported substantial financial growth:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $11,439.1 million | $9,498.6 million | 20% |
| Net Income | $970.3 million | $(57.4) million | NM |
| Earnings per Share (Diluted) | $1.07 | $(0.06) | NM |
| Cash Dividends Declared | $2.60 per share | $2.26 per share | 15% increase |
Product Portfolio and Innovations
Eli Lilly has a robust pipeline with approximately 50 new medicine candidates in clinical development or under regulatory review. Key products driving revenue include:
- Mounjaro®: Revenue of $2.38 billion in Q3 2024, up from $1.28 billion in Q3 2023.
- Zepbound®: Revenue of $1.26 billion in Q3 2024.
- Verzenio®: Revenue increased by 28% in the U.S. during Q3 2024.
- Trulicity®: Revenue decreased by 26% in Q3 2024, impacted by competitive dynamics.
Research and Development Investments
Eli Lilly's commitment to innovation is reflected in its R&D investments, which amounted to $2,734.1 million for Q3 2024, compared to $2,409.1 million in Q3 2023, representing an increase of 13.5%.
Market Expansion and Strategic Acquisitions
In August 2024, Eli Lilly completed the acquisition of Morphic for approximately $2.67 billion, enhancing its R&D capabilities and product offerings.
Global Revenue Distribution
Revenue distribution for Q3 2024 by geographical area is as follows:
| Region | Revenue (Q3 2024) | Revenue (Q3 2023) |
|---|---|---|
| U.S. | $7,813.6 million | $5,368.1 million |
| Europe | $1,628.3 million | $2,568.6 million |
| Japan | $429.1 million | $390.8 million |
| China | $459.9 million | $390.8 million |
| Other Countries | $1,108.2 million | $780.3 million |
Shareholder Value and Equity
As of September 30, 2024, Eli Lilly's shareholders' equity stood at $14,320.7 million, reflecting a strong increase from $10,863.7 million in the previous year.
| Equity Component | Amount (in millions) |
|---|---|
| Common Stock | $593.9 |
| Additional Paid-in Capital | $7,339.6 |
| Retained Earnings | $13,627.2 |
| Accumulated Other Comprehensive Loss | $(4,274.8) |
| Total Equity | $14,320.7 |
How Eli Lilly and Company (LLY) Works
Business Overview
Eli Lilly and Company (LLY) operates as a global pharmaceutical company focused on discovering, developing, and marketing innovative medicines. The company’s primary therapeutic areas include diabetes, oncology, immunology, and neurodegeneration.
Financial Performance
As of September 30, 2024, Eli Lilly reported a total revenue of $31.51 billion for the nine months ended September 30, 2024, representing a 27% increase from $24.77 billion for the same period in 2023. The revenue for the third quarter alone was $11.44 billion, up 20% from $9.50 billion in Q3 2023. Net income for the nine months was $6.18 billion, compared to $3.05 billion in 2023.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $31.51 billion | $24.77 billion | 27% |
| Net Income | $6.18 billion | $3.05 billion | 102% |
| Earnings per Share (Diluted) | $6.83 | $3.38 | 102% |
| Gross Margin | 80.9% | 78.6% | 2.3% |
Revenue Breakdown by Product
The company's revenue is significantly driven by key products within its portfolio. For the three months ended September 30, 2024, the revenue from major products was as follows:
| Product | U.S. Revenue | Outside U.S. Revenue | Total Revenue |
|---|---|---|---|
| Mounjaro | $2.38 billion | $728.0 million | $3.11 billion |
| Verzenio | $878.8 million | $490.4 million | $1.37 billion |
| Trulicity | $935.3 million | $366.0 million | $1.30 billion |
| Zepbound | $1.26 billion | $0 | $1.26 billion |
| Taltz | $600.3 million | $279.3 million | $879.6 million |
Research and Development
Eli Lilly continues to invest heavily in research and development (R&D). For the nine months ended September 30, 2024, R&D expenses were $7.97 billion, up 18% from $6.75 billion in the same period of 2023. The company has approximately 50 new medicine candidates in clinical development.
Operational Metrics
The following table summarizes key operational metrics for Eli Lilly:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Margin | $9.27 billion | $7.64 billion |
| Operating Income | $1.59 billion | $427.2 million |
| Income Taxes | $618.1 million | $484.6 million |
Liquidity and Capital Structure
As of September 30, 2024, Eli Lilly reported cash and cash equivalents of $3.37 billion, an increase from $2.82 billion at the end of 2023. Total debt stood at $31.12 billion, reflecting an increase of $5.89 billion since December 31, 2023. The company also has $1.98 billion remaining under its $5.00 billion share repurchase program.
Acquisitions and Investments
In Q3 2024, Eli Lilly acquired Morphic for approximately $2.67 billion, funded by proceeds from the issuance of debt. The company continues to invest in global facilities to enhance manufacturing capacity, anticipating increased demand for its products.
Market Trends and Competitive Landscape
The pharmaceutical market is characterized by increasing competition, particularly in the diabetes and oncology sectors. Eli Lilly's revenue from Mounjaro has shown significant growth due to strong demand, while products like Trulicity have faced competitive pressures, leading to a decrease in sales volume.
How Eli Lilly and Company (LLY) Makes Money
Revenue Streams
Eli Lilly and Company generates revenue primarily through two main categories: net product revenue and collaboration and other revenue.
| Revenue Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Product Revenue | $10,571.6 | $7,306.2 | 45.3 |
| Collaboration and Other Revenue | $867.5 | $2,192.4 | (60.5) |
| Total Revenue | $11,439.1 | $9,498.6 | 20.4 |
Key Products and Their Performance
The following table summarizes revenue from key products for the three months ended September 30, 2024, compared to the same period in 2023:
| Product | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Mounjaro | $2,384.7 | $1,277.0 | 86.9 |
| Verzenio | $878.8 | $684.6 | 28.5 |
| Trulicity | $935.3 | $1,259.0 | (25.7) |
| Zepbound | $1,257.8 | - | NM |
| Taltz | $600.3 | $744.2 | (19.3) |
Gross Margin and Expenses
Eli Lilly's gross margin for the three months ended September 30, 2024, was $9,268.3 million, with a gross margin percentage of 81.0% compared to 80.4% in 2023. The following table outlines the key expenses associated with revenue generation:
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Research and Development | $2,734.1 | $2,409.1 | 13.5 |
| Marketing, Selling, and Administrative | $2,099.8 | $1,803.9 | 16.4 |
| Acquired In-Process R&D | $2,826.4 | $2,975.1 | (5.0) |
| Income Taxes | $618.1 | $484.6 | 27.6 |
Net Income
Net income for the third quarter of 2024 was $970.3 million, compared to a net loss of $57.4 million in the same quarter of 2023. The earnings per share (EPS) were $1.07 for Q3 2024 compared to a loss of $0.06 for Q3 2023.
Cash Flow and Financial Position
The cash flow statement for the nine months ended September 30, 2024, indicates a net cash provided by operating activities of $6,344.1 million. Eli Lilly's total assets were $75,606.9 million, with total liabilities of $61,286.2 million as of September 30, 2024.
| Financial Metric | Value (in millions) |
|---|---|
| Total Assets | $75,606.9 |
| Total Liabilities | $61,286.2 |
| Total Equity | $14,320.7 |
Investment Strategy
Eli Lilly continues to invest heavily in research and development, with approximately $7,968.1 million allocated for R&D in the nine months ended September 30, 2024, reflecting an 18% increase from the previous year.
Conclusion
Through a combination of innovative product launches, strategic collaborations, and rigorous cost management, Eli Lilly and Company has positioned itself as a key player in the pharmaceutical industry, driving substantial revenue growth and profitability in 2024.
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Article updated on 8 Nov 2024
Resources:
- Eli Lilly and Company (LLY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Eli Lilly and Company (LLY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Eli Lilly and Company (LLY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.