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Mar 31, 2022
Eli Lilly Q1 2022 Earnings Report
Eli Lilly's Q1 2022 earnings showcased solid financial results, driven by volume growth and key growth products, while also advancing its pipeline with positive clinical trial readouts and regulatory submissions
Key Takeaways
Eli Lilly's Q1 2022 revenue increased by 15%, driven by a 20% increase in volume. EPS increased by 41% to $2.10 on a reported basis and by 63% to $2.62 on a non-GAAP basis. The company updated its 2022 EPS guidance to be in the range of $7.30 to $7.45 on a reported basis and $8.15 to $8.30 on a non-GAAP basis.
Revenue growth of 15% driven by volume growth of 20%.
Key growth products contributed 13 percentage points of revenue growth.
Advanced pipeline with positive Phase 3 readout for tirzepatide and Jardiance.
Q1 2022 EPS increased 41% to $2.10 on a reported basis.
2022 EPS guidance updated to be in the range of $7.30 to $7.45 on a reported basis.
Submitted mirikizumab to the U.S. Food and Drug Administration (FDA) for the treatment of adults with moderately-to-severely active ulcerative colitis.
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 2022 financial guidance, with revenue expected to be between $28.8 billion and $29.3 billion and EPS to be in the range of $7.30 to $7.45 on a reported basis and $8.15 to $8.30 on a non-GAAP basis.
Positive Outlook
- Revenue expected to be between $28.8 billion and $29.3 billion.
- Gross margin percent is expected to be approximately 76% on a reported basis.
- Gross margin percent is expected to be approximately 78% on a non-GAAP basis.
- The company's financial results for Q1 2022 include the favorable impact related to the implementation of the provision of the 2017 Tax Act that requires capitalization and amortization of research and development expenses for tax purposes.
- An unfavorable impact from foreign exchange rates on revenue is offset by strength of the core business.
Challenges Ahead
- Gross margin percent reduction is due to the impact of Q1 bebtelovimab sales and, to a lesser extent, increased manufacturing costs due to inflation.
- Research and development expenses were increased by $100 million and are now expected to be between $7.1 billion and $7.3 billion, driven by investment in late-stage pipeline assets.
- Operating margin percent has been reduced by 200 basis points and is now expected to be approximately 28% on a reported basis and approximately 30% on a non-GAAP basis primarily due to the negative impact attributable to acquired IPR&D and development milestone charges.
- Other income (expense) for 2022 is now expected to be expense in the range of $500 million to $400 million on a reported basis
- The company's financial guidance assumes this provision of the 2017 Tax Act will be deferred or repealed by Congress effective for 2022.