Eli Lilly and Company (NYSE: LLY) delivered a commanding financial performance in the first quarter of 2025, asserting its position as a leader in the pharmaceutical industry. The company’s reported revenue surged 45% year-over-year to $12.73 billion, a growth primarily driven by unprecedented volume increases of 53%, anchored by its flagship products Mounjaro and Zepbound. This revenue surge showcases the company’s effective commercial strategy and strong market demand across global territories.
In Q1 2025, U.S. revenue witnessed a 49% increase to \(8.49 billion, propelled by a 57% volume growth despite a moderate 7% reduction in realized prices. International markets contributed substantially as well, with non-U.S. revenue climbing 38% to \)4.24 billion, driven by a 46% volume expansion. This performance underscores Eli Lilly’s successful geographic diversification and market penetration.
Key product revenue soared, with Mounjaro revenue more than doubling to \(3.84 billion—a staggering 113% increase compared to Q1 2024—as demand soared globally, including new market entries. Zepbound revenue registered remarkable growth, climbing to \)2.31 billion in the U.S. alone, driven by elevated demand despite pricing pressures. Verzenio also marked a solid 10% revenue increase worldwide, further diversifying Lilly’s income streams.
Financial health indicators validated the company’s robust operational efficiency. Gross margin expanded impressively by 48% to $10.50 billion, with gross margin ratio improving 1.6 percentage points to 82.5% — attributing to optimized production costs and a favorable product mix, counterbalancing pricing headwinds.
Earnings per share (EPS) on a reported basis amplified 23% to \(3.06, reflecting net income of \)2.76 billion, while non-GAAP EPS ascended 29% to \(3.34, affirming the company’s superior profitability. These earnings figures include acquired in-process research and development (IPR&D) charges amounting to \)1.57 billion in Q1 2025, primarily linked to the acquisition of Scorpion Therapeutics’ PI3Kα inhibitor program STX-478. Despite these substantial charges, the resilient EPS growth highlights the company’s strong earnings power.
Research and Development (R&D) expenses rose modestly by 8% to $2.73 billion, reflecting Lilly’s continued commitment to pipeline advancement. Recent clinical successes include promising Phase 3 data for orforglipron, a novel oral small molecule GLP-1 agonist in diabetes and obesity trials, and rapid progress in oncology and immunology product approvals.
The company reaffirmed its 2025 revenue guidance between \(58.0 billion and \)61.0 billion, with a performance margin projected between 40.5% and 42.5% on a reported basis. Adjusted EPS guidance was updated to \(20.17 to \)21.67 (reported), reflecting the acquired IPR&D charges and investment losses, but maintaining robust profitability expectations.
The strategic expansion in manufacturing capabilities, including plans for four new facilities, aims to support escalating global demand. This aligns with Eli Lilly’s ongoing objective to leverage biotechnological innovation to redefine disease treatment, focusing on diabetes, obesity, oncology, and neurological disorders.
Lilly’s results and guidance should reassure investors that despite macroeconomic uncertainties and competitive industry dynamics, the company is well-positioned for sustained growth by delivering high-impact medicines with significant market potential.
For full details, please refer to the official 8-K filing: https://sec.gov/Archives/edgar/data/59478/000005947825000129/q125lillysalesandearningsp.htm.
Tags: EliLillyQ12025, PharmaceuticalRevenueGrowth, MounjaroZepbound, IPR&DImpact, PipelineInnovation