Eli Lilly Reports 32% Revenue Growth to $45.04 Billion for Fiscal Year 2024

Eli Lilly and Company reported significant financial growth for the fiscal year ending December 31, 2024, with total revenue reaching $45.04 billion, a 32% increase from $34.12 billion in 2023. The company's net income more than doubled, rising to $10.59 billion from $5.24 billion, resulting in diluted earnings per share of $11.71, up from $5.80 in the previous year. This growth was primarily driven by strong sales of its cardiometabolic products, particularly Mounjaro and Zepbound, which saw revenue increases of 124% and a notable launch in the U.S. market, respectively.

The company experienced a 39% increase in U.S. revenue, totaling $30.38 billion, while international sales rose by 19% to $14.67 billion. The increase in revenue was attributed to higher volumes and, to a lesser extent, increased prices. Mounjaro alone generated $11.54 billion in total revenue, significantly contributing to the overall growth. However, sales of Trulicity declined by 26% in the U.S. due to competitive pressures and supply constraints.

Strategically, Eli Lilly has been active in expanding its product portfolio through acquisitions and collaborations. In 2024, the company completed the acquisition of Morphic Holding, Inc. for $3.28 billion, enhancing its research capabilities in the field of immunology. Additionally, Lilly's collaboration with Boehringer Ingelheim for the diabetes drug Jardiance has yielded substantial revenue, including a one-time payment of $300 million related to an amendment of their agreement. The company also launched LillyDirect, a digital health platform aimed at improving patient access to its medications.

Operationally, Eli Lilly employed approximately 47,000 people by the end of 2024, with around 11,000 dedicated to research and development. The company continues to invest heavily in expanding its manufacturing capabilities, with capital expenditures reaching $5.06 billion in 2024, up from $3.45 billion in 2023. This investment is crucial as the company anticipates increased demand for its products, particularly in the cardiometabolic and oncology sectors.

Looking ahead, Eli Lilly faces challenges from regulatory changes, particularly the Inflation Reduction Act, which could impact pricing and reimbursement for its products. The company has indicated that it expects further government-set prices for additional products in the coming years, which may accelerate revenue erosion prior to the expiration of exclusivities. Despite these challenges, Lilly remains committed to its long-term strategy of innovation and expansion in the pharmaceutical market, with a robust pipeline of approximately 55 new medicine candidates currently in clinical development.