Latest news with #EliLillyandCo
Yahoo
02-05-2025
- Business
- Yahoo
Eli Lilly and Co (LLY) Q1 2025 Earnings Call Highlights: Record Revenue Growth and Strategic ...
Revenue Growth: Increased by 45% compared to Q1 2024. Key Products Revenue: Grew by more than $4 billion, accounting for $7.5 billion of total revenue. Gross Margin: 83.5% in Q1, up 1 percentage point from the previous year. Marketing, Selling, and Administrative Expenses: Increased by 26%. R&D Expenses: Increased by 8%. Acquired IP R&D Charges: $1.57 billion, impacting EPS by $1.72. Non-GAAP Performance Margin: 42.6%, an increase of over 11 percentage points from Q1 2024. Effective Tax Rate: 20.2% for Q1. Earnings Per Share (EPS): $3.34, inclusive of a $1.72 negative impact from acquired IP R&D charges. US Revenue Growth: Increased by 49% in Q1. Europe Revenue Growth: Increased by 71% in constant currency. Japan Revenue Growth: Increased by 15% in constant currency. China Revenue Growth: Increased by 21% in constant currency. Rest of World Revenue Growth: Increased by 17% in constant currency. Mounjaro Sales: $3.8 billion, more than double from the previous year. Zepbound Sales: Increased by $1.8 billion to $2.3 billion in the quarter. Dividends and Share Repurchase: $1.3 billion in dividends and $1.2 billion in share repurchase. Warning! GuruFocus has detected 12 Warning Signs with EXC. Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Eli Lilly and Co (NYSE:LLY) reported a 45% increase in revenue compared to Q1 2024, driven by key products such as Mounjaro and Zepbound. The company achieved several key pipeline milestones, including the approval of Jaypirca in the EU for CLL and Omvoh in the US, EU, and Japan for Crohn's disease. Eli Lilly and Co (NYSE:LLY) shared promising Phase III clinical data for orforglipron, an oral GLP-1, showing potential for significant impact in Type 2 diabetes and obesity. The company announced plans to more than double its US manufacturing investment, with over $50 billion in new investments since 2020. Eli Lilly and Co (NYSE:LLY) distributed $1.3 billion in dividends and executed a $1.2 billion share repurchase in Q1 2025. Marketing, selling, and administrative expenses increased by 26%, driven by promotional activities for new launches. R&D expenses rose by 8%, primarily due to higher development costs for late-stage assets and early-stage research investments. The company recognized acquired IP R&D charges of $1.57 billion, negatively impacting earnings per share by $1.72. Eli Lilly and Co (NYSE:LLY) faces potential challenges from tariffs and trade dynamics, which could negatively affect its financial outlook if expanded. The company withdrew its US application for the heart failure with preserved ejection fraction indication for tirzepatide, as the FDA requires an additional confirmatory clinical trial. Q: In light of the CVS formulary announcement, what is your expectation on market share dynamics for Mounjaro and Zepbound, and how will you navigate the PBM environment? A: David Ricks, CEO, stated that while the CVS announcement was not surprising, Lilly is focused on expanding choice and access rather than reducing it. The company aims to continue driving share and preference for its brands, emphasizing the development of innovative medicines like orforglipron, which offers the convenience of an oral GLP-1 with injectable-like efficacy. Q: What is the strategic positioning of orforglipron in the market, and are there plans for broader indications beyond diabetes and obesity? A: Daniel Skovronsky, Chief Scientific Officer, highlighted that orforglipron's oral convenience makes it suitable for broad primary care indications. Lilly plans to pursue various directions, including potential combinations with other mechanisms in immunology and neuroscience. The company is also developing additional oral incretins and multifunctional orals. Q: How do you see orforglipron competing in the core obesity and diabetes market relative to injectables, and what share do you envision for orals? A: Patrik Jonsson, President of Lilly Cardiometabolic Health, noted that orforglipron has significant opportunities, particularly as 50% of Type 2 diabetes patients prefer oral medication. The oral form allows for greater scalability and global reach compared to injectables, positioning it as a first-line incretin for both Type 2 diabetes and chronic weight management. Q: Can you discuss the pricing strategy for orforglipron and how having a portfolio of weight loss medications might impact PBM discussions? A: Patrik Jonsson explained that while specific pricing details are not disclosed until launch, having a portfolio allows Lilly to target different patient segments effectively. David Ricks added that Lilly aims to reduce the gap between list and net prices, promoting more transparent pricing and reducing rebate flows. Q: Regarding the CVS announcement, how do you view this development in terms of GLP-1 market dynamics and access? A: David Ricks expressed that while the CVS decision might reduce choice, Lilly's focus remains on innovation and differentiation. The company believes in expanding access and choice, and despite the CVS decision, Lilly will continue to drive innovation and market growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
CBS News
17-04-2025
- Health
- CBS News
Eli Lilly says GLP-1 pill for diabetes and weight loss effective in study, plans to seek FDA approval
Eli Lilly and Co. , the maker of Zepbound and Mounjaro, announced success Thursday of its Phase 3 clinical trial for a once-daily GLP-1 pill — an oral form of the blockbuster medication used for diabetes and weight loss . The trial of the drug, orforglipron, measured its efficacy and safety in adults with Type 2 diabetes compared to a placebo. It found the pill lowered A1C, a blood level used to diagnose diabetes, by an average of 1.3% to 1.6%, across different doses, after 40 weeks. Participants taking the highest dose also lost an average of 16 pounds. "Given that participants had not yet reached a weight plateau at the time the study ended, it appears that full weight reduction was not yet attained," the company said in a news release. It did not include information on the demographics of the people who participated in the trial. The most commonly reported adverse effects were mild to moderate gastrointestinal issues, including diarrhea, nausea, indigestion, constipation and vomiting. The pill, which would offer an alternative to injections, is the first small molecule oral GLP-1 to succeed in a Phase 3 trial, the company said. Eli Lilly says it plans to submit orforglipron to the U.S. Food and Drug Administration for approval as a Type 2 diabetes treatment in 2026. For weight management, it plans to submit the drug to global regulatory agencies by the end of this year. "If approved, the company is confident in its ability to launch orforglipron worldwide without supply constraints," the news release said. "This would further Lilly's mission to reduce chronic diseases like type 2 diabetes, which is expected to impact an estimated 760 million adults by 2050."
Yahoo
26-02-2025
- Business
- Yahoo
Eli Lilly will build 4 new manufacturing sites to increase domestic drug production
Eli Lilly and Co. Wednesday announced plans to build four pharmaceutical manufacturing sites in the United States, significantly boosting domestic medicine production and adding around 13,000 manufacturing and construction jobs. Lilly will invest $27 billion in the four plants, the Indianapolis drugmaker announced at a press conference in Washington D.C. Wednesday. The company is in negotiations with several states and plans to announce the four locations later this year. It's not clear if Indiana is under consideration for sites. The company said the facilities will make medicine for patients within five years. Three of the sites will manufacture active pharmaceutical ingredients that the company says will strengthen the company's supply chain. The fourth will expand Lilly's global manufacturing network for injectable therapies. Lilly expects to create 3,000 highly skilled manufacturing jobs for engineers, scientists, operations personnel and lab technicians along with another 10,000 construction jobs during development of the sites. Wednesday's expansion doubles the amount of money Lilly has invested since 2020, bringing the total to a whopping $50 billion. Previously announced projects included new facilities at the LEAP Innovation District and the Lilly Medicine Foundry in Lebanon and expansions to existing facilities in Indianapolis alongside new sites in North Carolina and Wisconsin. "Lilly's optimism about the potential of our pipeline across therapeutic areas — cardiometabolic health, oncology, immunology and neuroscience — drives our unprecedented commitment to our domestic manufacturing build-out. Our confidence positions us to help reinvigorate domestic manufacturing, which will benefit hard-working American families and increase exports of medicines made in the U.S.A.," said Lilly chair and CEO David A. Ricks in a statement. More: Eli Lilly plans $4.5 billion facility in LEAP District, bringing investment to $13 billion For the past few years, Lilly has made news by driving large-scale investments in the LEAP Innovation District, billed as a future manufacturing and tech mecca in Lebanon, Indiana. Lilly has said the company expects to increase production for its blockbuster weight loss and diabetes drugs at the 9,000 acre-district along the I-65 corridor in Boone County that's managed by the Indiana Economic Development Corporation Alysa Guffey covers business and development for IndyStar. Contact her at amguffey@ This article originally appeared on Indianapolis Star: Eli Lilly will spend $27 billion to build new U.S. manufacturing sites
