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.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...