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• Revenue Growth: Increased by 45% compared to Q1 2024.

• Key Products Revenue: Grew by more than $4 billion, accounting for $7.5 billion of total revenue.

• Gross Margin: 83.5% in Q1, up 1 percentage point from the previous year.

• Marketing, Selling, and Administrative Expenses: Increased by 26%.

• R&D Expenses: Increased by 8%.

• Acquired IP R&D Charges: $1.57 billion, impacting EPS by $1.72.

• Non-GAAP Performance Margin: 42.6%, an increase of over 11 percentage points from Q1 2024.

• Effective Tax Rate: 20.2% for Q1.

• Earnings Per Share (EPS): $3.34, inclusive of a $1.72 negative impact from acquired IP R&D charges.

• US Revenue Growth: Increased by 49% in Q1.

• Europe Revenue Growth: Increased by 71% in constant currency.

• Japan Revenue Growth: Increased by 15% in constant currency.

• China Revenue Growth: Increased by 21% in constant currency.

• Rest of World Revenue Growth: Increased by 17% in constant currency.

• Mounjaro Sales: $3.8 billion, more than double from the previous year.

• Zepbound Sales: Increased by $1.8 billion to $2.3 billion in the quarter.

• Dividends and Share Repurchase: $1.3 billion in dividends and $1.2 billion in share repurchase.

• Warning! GuruFocus has detected 12 Warning Signs with EXC.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Eli Lilly and Co (NYSE:LLY) reported a 45% increase in revenue compared to Q1 2024, driven by key products such as Mounjaro and Zepbound.

• The company achieved several key pipeline milestones, including the approval of Jaypirca in the EU for CLL and Omvoh in the US, EU, and Japan for Crohn's disease.

• Eli Lilly and Co (NYSE:LLY) shared promising Phase III clinical data for orforglipron, an oral GLP-1, showing potential for significant impact in Type 2 diabetes and obesity.

• The company announced plans to more than double its US manufacturing investment, with over $50 billion in new investments since 2020.

• Eli Lilly and Co (NYSE:LLY) distributed $1.3 billion in dividends and executed a $1.2 billion share repurchase in Q1 2025.

Negative Points

• Marketing, selling, and administrative expenses increased by 26%, driven by promotional activities for new launches.

• R&D expenses rose by 8%, primarily due to higher development costs for late-stage assets and early-stage research investments.

• The company recognized acquired IP R&D charges of $1.57 billion, negatively impacting earnings per share by $1.72.

• Eli Lilly and Co (NYSE:LLY) faces potential challenges from tariffs and trade dynamics, which could negatively affect its financial outlook if expanded.

• The company withdrew its US application for the heart failure with preserved ejection fraction indication for tirzepatide, as the FDA requires an additional confirmatory clinical trial.