Eli Lilly (LLY) earnings Q1 2025
Eli Lilly Q1 2025 Earnings: Record Revenue Growth Despite Lowered Profit Guidance
Table of Contents
Introduction
Eli Lilly has reported impressive Q1 2025 earnings, showcasing significant revenue growth driven by its blockbuster weight loss and diabetes drugs. However, the company has revised its full-year profit guidance downward due to charges related to a recent cancer treatment acquisition.
Eli Lilly’s Q1 2025 earnings show strong growth in weight loss and diabetes drug sales
Key Financial Highlights
- Q1 revenue: $12.73 billion (up 45% year-over-year)
- Adjusted EPS: $3.34 (beating expectations)
- Mounjaro sales: $3.84 billion (up 113%)
- Zepbound sales: $2.31 billion (up 346%)
Q1 2025 Earnings Overview
Eli Lilly’s Q1 2025 earnings exceeded Wall Street expectations, with revenue reaching $12.73 billion, a 45% increase from the same period last year. The company’s adjusted earnings per share of $3.34 surpassed analyst estimates of $3.02.
Earnings Breakdown
- U.S. sales increased 49% to $8.49 billion
- Volume growth of 57% for Zepbound and Mounjaro
- Net income: $2.76 billion ($3.06 per share)
- Adjusted earnings: $3.34 per share
Weight Loss and Diabetes Drugs Performance
The company’s weight loss and diabetes drugs continue to drive significant growth. Mounjaro generated $3.84 billion in revenue, up 113% from last year, while Zepbound recorded $2.31 billion in sales, more than quadrupling its previous year’s performance.
Drug Performance Highlights
- Mounjaro exceeds expectations with $3.84 billion revenue
- Zepbound achieves $2.31 billion in sales
- Strong demand continues to outpace supply
- FDA confirms end of tirzepatide shortage
Updated Financial Guidance
Eli Lilly has revised its full-year 2025 adjusted earnings guidance to $20.78-$22.28 per share, down from the previous range of $22.50-$24.00. This adjustment reflects a $1.57 billion charge related to the acquisition of an oral cancer drug from Scorpion Therapeutics.
Guidance Details
- Maintained sales guidance: $58-$61 billion
- Lowered EPS guidance due to acquisition charges
- Guidance accounts for existing tariffs
- Excludes potential new pharmaceutical tariffs
Manufacturing and Tariff Impact
CEO Dave Ricks commented on the potential impact of tariffs on pharmaceutical imports, noting that the threat of tariffs has already encouraged investment in U.S. manufacturing. The company is advocating for permanently lower tax rates to incentivize domestic production.
Manufacturing Strategy
- Advocating for 15% domestic production tax rate
- Investing in U.S. manufacturing capacity
- Addressing supply chain challenges
- Focusing on sustainable production growth
Eli Lilly’s Q1 2025 earnings demonstrate the company’s strong position in the weight loss and diabetes drug market, despite the challenges of meeting unprecedented demand. The company’s strategic investments in manufacturing and its focus on innovation continue to drive growth in the pharmaceutical sector.
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