Eli Lilly Reports Robust Q4 and Full-Year 2024 Results, Driven by Incretin Drugs and Diverse Portfolio

Eli Lilly has reported a significant leap in revenue for the fourth quarter of 2024, with sales growth across multiple therapeutic areas assuaging investor concerns about the company's incretin drugs for diabetes and obesity. The pharmaceutical giant's performance underscores the continued strength of its product lineup and its ability to navigate the complex dynamics of the burgeoning metabolic medicines market.

Impressive Financial Performance

Eli Lilly announced fourth-quarter revenue of $13.53 billion, marking a substantial 45% increase compared to the same period in 2023. For the full year 2024, the company grew sales by 32% to approximately $45 billion, aligning with updated guidance provided during the J.P. Morgan Healthcare Conference in January.

The stellar performance was largely attributed to the company's incretin drugs, with Mounjaro (tirzepatide) for type 2 diabetes leading the charge. Mounjaro saw a 60% sales increase, bringing in $3.5 billion in the fourth quarter alone. Its obesity counterpart, Zepbound, demonstrated even more dramatic growth, with sales soaring to $1.9 billion—an eleven-fold increase from its $175 million haul in Q4 2023.

Beyond Incretins: Diverse Portfolio Strength

While Mounjaro and Zepbound have been the headliners, Eli Lilly's non-incretin products also showed robust growth, with sales increasing by 20% in the fourth quarter. Notably, breast cancer medication Verzenio and SGLT2 inhibitor Jardiance generated approximately $1.6 billion and $1.2 billion, respectively, in Q4 2024.

CEO David Ricks emphasized the strength of Lilly's broader portfolio, stating, "If you stripped away incretins and GLP-1s from the pharma sector, the balance of Lilly would probably be the fastest-growing big company in the sector." The company is looking to capitalize on a suite of new drugs, including cancer treatment Jaypirca, atopic dermatitis therapy Ebglyss, ulcerative colitis drug Omvoh, and Alzheimer's disease medication Kisunla.

Navigating Market Dynamics and Future Outlook

Despite the impressive results, Eli Lilly acknowledges the challenges in forecasting the rapidly evolving metabolic medicines market. The company slightly adjusted its 2024 sales expectations in January, citing an overestimation of growth pace for Mounjaro and Zepbound.

Looking ahead, Lilly maintains its 2025 revenue guidance of $58 billion to $61 billion. The company continues to invest heavily in manufacturing capacity, expecting to produce 1.6 times more marketable incretin doses in the first half of 2025 compared to the same period in 2024. Ricks remains bullish on future demand, stating, "I have zero doubt that we still have more building to do, and that the capacity we put in the ground so far is not sufficient to meet global demand."

As Eli Lilly navigates the "turbulence" of the obesity and diabetes markets, the company remains confident in its long-term prospects, with Ricks asserting, "We don't think we're close to" reaching the "edge of the demand curve" for obesity treatments.