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; declines in Trulicity and Baqsimi rights sale partially offset gains.

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

• 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, obesity, and sleep apnea.

• Manufacturing expansion continued, with a $5.3 billion additional investment in Indiana, bringing total to $9 billion at that site.

• Announced acquisition of Morphic to strengthen the pipeline in chronic disease and immunology therapies.

Financial highlights

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

• Gross margin increased to 82% (non-GAAP) and 80.8% (reported), benefiting from favorable product mix and higher prices.

• Operating income rose 90% year-over-year (non-GAAP) to $4.3 billion; EPS reached $3.92 (non-GAAP, up 86%) and $3.28 (reported, up 68%).

• U.S. revenue increased 42%, with volume growth of 27% and realized prices up 15%; Europe up 19–20%, Japan up 2–15%, China up 1%, Rest of World up 61%.

• Mounjaro global sales were $3.1 billion, Zepbound exceeded $1.24 billion, Verzenio worldwide sales rose 44%; Trulicity down 31%, Taltz up 17%, Jardiance up 15%, Humalog up 43%.

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 increased to $15.10–$15.60 (reported) and $16.10–$16.60 (non-GAAP); both include $0.24 of acquired IPR&D charges through Q2.

• Gross margin less OpEx/revenue expected at 36–38% (reported), 37–39% (non-GAAP); tax rate guidance at approximately 15%.

• Second-half 2024 revenue expected to grow 38% year-over-year, with Q4 growth outpacing Q3.

• Guidance reflects improved production clarity and planned international launches.