Eli Lilly Q3 2023 Earnings Report
Key Takeaways
Eli Lilly reported a strong Q3 2023, with revenue increasing by 37% driven by Mounjaro, Verzenio, and Jardiance, as well as revenue from the sale of rights for the olanzapine portfolio (Zyprexa). However, reported EPS was a loss of $0.06, and non-GAAP EPS was $0.10, both impacted by acquired IPR&D charges.
Revenue increased by 37%, driven by Mounjaro, Verzenio, and Jardiance, and the sale of rights for the olanzapine portfolio.
New Products contributed $1.44 billion to revenue, led by Mounjaro.
Growth Products revenue increased by 12%, led by Verzenio and Jardiance.
Pipeline progress included FDA approvals of Omvoh and an expanded indication for Jardiance, and positive results in the mirikizumab Phase 3 VIVID-1 study.
Eli Lilly
Eli Lilly
Eli Lilly Revenue by Segment
Eli Lilly Revenue by Geographic Location
Forward Guidance
The company updated certain elements of its 2023 financial guidance on both a reported and non-GAAP basis. Revenue guidance remains unchanged with the range of $33.4 to $33.9 billion. Based on these changes, EPS guidance decreased to the range of $5.95 to $6.15 on a reported basis and $6.50 to $6.70 on a non-GAAP basis.
Positive Outlook
- Revenue guidance remains unchanged with the range of $33.4 to $33.9 billion.
- Gross margin as a percent of revenue remains unchanged at approximately 78% on a reported basis and 80% on a non-GAAP basis, but is trending toward the higher end of this estimate.
- Marketing, selling and administrative expenses guidance remains unchanged with the range of $7.2 to $7.4 billion.
- Research and development expenses guidance also remains unchanged with the range of $8.9 to $9.1 billion.
- Other income (expense) guidance remains unchanged on a non-GAAP basis with the range of $0 to $100 million of income.
Challenges Ahead
- Acquired IPR&D guidance increased by $2.98 billion to $3.18 billion, reflecting charges incurred through Q3 2023.
- Other income (expense) guidance has been updated to the range of $150 to $50 million of expense on a reported basis.
- The estimated effective tax rate increased to 19% to 20%, primarily driven by the non-deductible acquired IPR&D charges incurred in Q3 2023.
- EPS guidance decreased to the range of $5.95 to $6.15 on a reported basis.
- EPS guidance decreased to the range of $6.50 to $6.70 on a non-GAAP basis.
Revenue & Expenses
Visualization of income flow from segment revenue to net income