Loading...
•
Mar 31, 2021
Eli Lilly Q1 2021 Earnings Report
Eli Lilly's financial performance in Q1 2021 reflected significant revenue growth driven by key products and COVID-19 antibodies, alongside increased R&D investments.
Key Takeaways
Eli Lilly's Q1 2021 revenue increased by 16%, driven by volume growth and key products like Trulicity and Verzenio. The company achieved significant progress in R&D, including positive data readouts for tirzepatide and donanemab. EPS decreased on a reported basis but increased on a non-GAAP basis. The 2021 EPS guidance was lowered on a reported basis and adjusted on a non-GAAP basis.
Revenue increased by 16% driven by volume growth of 17%.
Key growth products contributed 8 percentage points of revenue growth, representing approximately 46% of total revenue.
Operating expenses increased by 11%, driven by higher research and development investments, including expenses for COVID-19 therapies.
The FDA granted Emergency Use Authorization for bamlanivimab and etesevimab together for the treatment of COVID-19.
Eli Lilly
Eli Lilly
Eli Lilly Revenue by Segment
Eli Lilly Revenue by Geographic Location
Revenue by Segment
Verzenio Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comOutside U.S. Revenue
CapyFin.com Forward Guidance
Eli Lilly updated its 2021 financial guidance with revenue expected between $26.6 billion and $27.6 billion. Earnings per share are projected to be in the range of $7.03 to $7.23 on a reported basis and $7.80 to $8.00 on a non-GAAP basis.
Positive Outlook
- Revenue growth is expected to be driven by volume from key growth products, including Trulicity, Taltz, Verzenio, Jardiance, Olumiant, Cyramza, Emgality, Tyvyt and Retevmo, as well as by COVID-19 therapies.
- Gross margin as a percent of revenue for 2021 is still expected to be approximately 77% on a reported basis and approximately 79% on a non-GAAP basis.
- The company expects low-to-mid-single digit net price declines in the U.S., driven primarily by increased rebates to maintain broad commercial access and segment mix, partially offset by lower utilization in the 340B segment.
- Other income (expense) for 2021 is now expected to be income in the range of $150 million to $250 million on a reported basis
- The 2021 effective tax rate is now expected to be approximately 13 percent on both a reported basis and a non-GAAP basis.
Challenges Ahead
- Revenue growth is expected to be partially offset by lower revenue for products that have lost patent exclusivity.
- The company expects mid-single digit net price declines globally in 2021.
- Outside the U.S., the company expects net price declines in China, Japan, and Europe.
- Research and development expenses for 2021 are now expected to be in the range of $6.9 billion to $7.1 billion, reflecting additional investments in potential therapies for Alzheimer's disease and approximately $400 million to $500 million of continued investment in COVID-19 therapies.
- Other income (expense) for 2021 is expense in the range of $100 million to $200 million on a non-GAAP basis.