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Jun 30, 2022
Eli Lilly Q2 2022 Earnings Report
Eli Lilly's financial performance was marked by the launch of Mounjaro and advancements in the pipeline, but revenue decreased due to lower realized prices and generic competition.
Key Takeaways
Eli Lilly's Q2 2022 revenue decreased by 4% year-over-year, but grew 6% excluding Alimta, Cialis in China, and COVID-19 antibodies. The company launched Mounjaro in the U.S. and advanced its pipeline with regulatory approvals and Priority Review designations. EPS decreased by 31% on a reported basis and 32% on a non-GAAP basis, both inclusive of acquired IPR&D and development milestone charges.
Lilly's revenue decreased by 4% in Q2 2022, but grew 6% excluding Alimta, Cialis in China, and COVID-19 antibodies.
Key growth products grew 20% and represented 67% of revenue in Q2 2022, excluding revenue from COVID-19 antibodies.
The FDA accepted donanemab and pirtobrutinib with Priority Review designation.
Mounjaro was approved by the FDA and received a positive opinion from the European Medicines Agency's Committee for Medicinal Products for Human Use.
Eli Lilly
Eli Lilly
Eli Lilly Revenue by Segment
Eli Lilly Revenue by Geographic Location
Revenue by Segment
Mounjaro Revenue
CapyFin.comVerzenio Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comOutside U.S. Revenue
CapyFin.com Forward Guidance
Lilly has updated its 2022 financial guidance, with EPS now expected to be in the range of $6.96 to $7.11 on a reported basis and $7.90 to $8.05 on a non-GAAP basis. Revenue is still anticipated to be between $28.8 billion and $29.3 billion.
Positive Outlook
- Revenue is still anticipated to be between $28.8 billion and $29.3 billion.
- Includes an additional $400 million of unfavorability from foreign exchange rates, offset by additional revenue from the company's COVID-19 antibody, bebtelovimab.
- The additional revenue from bebtelovimab is inclusive of $275 million from the U.S. government purchase agreement announced in June 2022 as well as estimated revenue from the commencement of non-U.S. government distribution.
- The company's outlook for gross margin, marketing, selling, and administrative expenses, and research and development expenses remain unchanged.
- The company's financial results for Q2 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.
Challenges Ahead
- EPS for 2022 is now expected to be in the range of $6.96 to $7.11 on a reported basis
- EPS for 2022 is now expected to be in the range of $7.90 to $8.05 on a non-GAAP basis
- Operating margin percent has been reduced by 100 basis points and is now expected to be approximately 27% on a reported basis
- Operating margin percent has been reduced by 100 basis points and is now expected to be approximately 29% on a non-GAAP basis, primarily due to the impacts attributable to foreign exchange rates and acquired IPR&D and development milestone charges to date.
- Other income (expense) for 2022 is now expected to be expense in the range of $500 million to $600 million on a reported basis
Revenue & Expenses
Visualization of income flow from segment revenue to net income