- Revenue in Q4 2022 decreased 9%. Excluding COVID-19
antibodies, revenue in Q4 2022 increased 5%, or 10% on a constant
currency basis, driven by volume growth of key growth products,
partially offset by lower Alimta revenue. Excluding COVID-19
antibodies, total worldwide volume in Q4 2022 increased
13%.
- Pipeline advancements included FDA approval of Jaypirca for
mantle cell lymphoma under the accelerated approval pathway and FDA
and EMA acceptance of regulatory submissions for Jardiance for
adults with chronic kidney disease. Additionally, the company
initiated a rolling submission in the U.S. for tirzepatide in
obesity and the FDA granted Fast Track designation for tirzepatide
in obstructive sleep apnea.
- Key growth products - consisting of Verzenio, Mounjaro,
Jardiance, Taltz, Trulicity, Retevmo, Emgality, Cyramza, Tyvyt and
Olumiant - grew 21% and represented 70% of revenue in Q4
2022.
- Q4 2022 EPS increased 13% to $2.14 on a reported basis and decreased 4% to
$2.09 on a non-GAAP basis, both
inclusive of $0.23 of acquired
IPR&D and development milestone charges.
- 2023 EPS guidance updated to be in the range of $7.90 to $8.10 on a
reported basis and $8.35 to
$8.55 on a non-GAAP basis.
INDIANAPOLIS, Feb. 2, 2023
/PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) today announced
its financial results for the fourth quarter of 2022.
"2023 is an inflection point for Lilly - a chance to expand our
impact on patients and growth potential as an R&D-driven
biopharma company," said David A.
Ricks, Lilly's chair and CEO. "Over the course of this
critical year, we hope to launch as many as four new medicines for
challenging diseases, while advancing our next generation of
molecules currently in Phase 3."
Anat Ashkenazi, Lilly's executive vice president and chief
financial officer added: "As we closed out 2022, Lilly demonstrated
strong growth and achieved meaningful pipeline progress that
included the launch for Mounjaro in type 2 diabetes. We expect to
capitalize on this momentum and deliver mid-teen revenue growth for
our core business in 2023 while remaining committed to investing in
innovation, late-stage opportunities, manufacturing capacity, and
our people."
Lilly shared numerous updates recently on key regulatory,
clinical, business development and other events, including:
- The U.S. Food and Drug Administration (FDA) approval of
Jaypirca™ (pirtobrutinib) for adults with relapsed or
refractory mantle cell lymphoma after at least two lines of
systemic therapy, including a BTK inhibitor, under the accelerated
approval pathway;
- FDA issuance of a complete response letter for the accelerated
approval submission of donanemab for early Alzheimer's
disease;
- FDA and European Medicines Agency acceptance of regulatory
submissions for Jardiance® for adults with chronic
kidney disease based on results from the EMPA-KIDNEY Phase 3
trial;
- The initiation of a rolling submission in the U.S. for
tirzepatide in obesity and FDA Fast Track designation for
tirzepatide in obstructive sleep apnea;
- The announcement that Jardiance is the first SGLT2 inhibitor to
show statistically significant reduction in blood sugar levels in
children and adolescents with type 2 diabetes;
- Positive donanemab data from the first Phase 3 active
comparator study in early Alzheimer's disease, TRAILBLAZER-ALZ
4;
- Plans to invest an additional $450
million and create at least 100 new jobs to expand
manufacturing capacity at the company's Research Triangle Park
facility;
- The acquisition of Akouos, Inc., which expands Lilly's efforts
in genetic medicines to include Akouos's potential first-in-class
adeno-associated viral gene therapies;
- The fifth consecutive 15% annual increase in Lilly's quarterly
dividend, doubling since 2018;
- A collaboration with EVA Pharma to establish local
manufacturing capabilities to supply low-cost insulin to at least 1
million people by 2030, mostly in Africa; and
- An initiative with Direct Relief to expand cold chain capacity
in Africa, Latin America, the Caribbean and Southeast Asia.
For additional information on these and other important public
announcements, visit the news section of Lilly's website.
Financial Results
|
|
|
|
|
$ in millions,
except
per share
data
|
Fourth
Quarter
|
%
|
|
2022
|
|
2021
|
Change
|
Revenue
|
$7,301.8
|
|
$7,999.9
|
(9) %
|
|
|
|
|
|
Net Income –
Reported
|
1,937.7
|
|
1,726.1
|
12 %
|
EPS –
Reported
|
2.14
|
|
1.90
|
13 %
|
|
|
|
|
|
Net Income –
Non-GAAP
|
1,893.1
|
|
1,970.5
|
(4) %
|
EPS –
Non-GAAP
|
2.09
|
|
2.17
|
(4) %
|
|
|
|
|
|
A discussion of the non-GAAP financial measures is included
under "Reconciliation of GAAP Reported to Selected Non-GAAP
Adjusted Information (Unaudited)."
Fourth-Quarter Reported Results
In Q4 2022, worldwide revenue was $7.30
billion, a decrease of 9% compared with Q4 2021, driven by a
4% decrease from the unfavorable impact of foreign exchange rates,
a 3% decrease due to lower realized prices, and a 2% decrease in
volume. Excluding COVID-19 antibodies, revenue in Q4 2022 increased
5% and total worldwide volume increased 13%. Key growth products,
consisting of Verzenio®, Mounjaro®,
Jardiance, Taltz®, Trulicity®,
Retevmo®, Emgality®, Cyramza®,
Tyvyt® and Olumiant®, grew 21% and
represented 70% of revenue for Q4 2022.
Revenue in the U.S. decreased 10% to $4.66 billion, driven by a 10% decrease in volume
with prices remaining relatively flat. Excluding revenue from
COVID-19 antibodies, revenue in the U.S. increased by 11%,
primarily driven by volume from key growth products.
Revenue outside the U.S. decreased 6% to $2.64 billion, driven by a 12% decrease from the
unfavorable impact of foreign exchange rates and a 7% decrease due
to lower realized prices, partially offset by a 12% increase in
volume. The lower realized prices were primarily driven by the
impact of government pricing in China from the volume-based procurement (VBP)
for Humalog® and the National Reimbursement Drug List
(NRDL) formulary for certain products, particularly Verzenio and
Tyvyt. The increase in volume outside the U.S. was largely driven
by key growth products and approximately $130 million of one-time revenue associated with
the sale of the company's rights to Alimta in Korea and
Taiwan.
Gross margin decreased 3% to $5.75
billion in Q4 2022 compared with Q4 2021. Gross margin as a
percent of revenue was 78.8%, an increase of 4.4 percentage points
compared with Q4 2021. The increase in gross margin percent was
primarily driven by lower sales of COVID-19 antibodies, partially
offset by lower realized prices and increased expenses due to
inflation and logistics costs.
In Q4 2022, research and development expenses increased 5% to
$2.00 billion, or 27% of revenue,
driven by higher development expenses for late-stage assets,
partially offset by the favorable impact of foreign exchange rates
and lower development expenses for COVID-19 antibodies.
Marketing, selling and administrative expenses increased 3% to
$1.64 billion in Q4 2022, primarily
driven by costs associated with launches of new products and
indications, partially offset by the favorable impact of foreign
exchange rates.
In Q4 2022, the company recognized acquired in-process research
and development (IPR&D) and development milestone charges
of $240.1 million. In Q4 2021, the
company recognized acquired IPR&D and development
milestone charges of $437.7 million,
primarily related to a business development transaction with
Foghorn Therapeutics Inc.
In Q4 2022, the company recognized asset impairment,
restructuring and other special charges of $38.1 million, primarily related to acquisition
and integration costs associated with the closing of our
acquisition of Akouos, Inc. In Q4 2021, the company recognized
asset impairment, restructuring and other special charges of
$104.5 million, primarily related to
impairment of an intangible asset from our acquisition of Loxo
Oncology.
Operating income in Q4 2022 was $1.84
billion compared with $1.92 billion in Q4 2021.
Operating margin percent, defined as operating income as a percent
of revenue, was 25.1%, which includes a negative impact of
approximately 330 basis points attributed to acquired IPR&D and
development milestone charges.
Other income (expense) was income of $260.0 million in Q4 2022 compared with expense
of $77.3 million in Q4 2021. The
increase in other income (expense) was primarily driven by net
gains on investments in equity securities in Q4 2022 compared with
net losses on investments in equity securities in Q4 2021.
The effective tax rate was 7.6% in Q4 2022 compared with 6.2% in
Q4 2021. The effective tax rate in Q4 2022 reflects the favorable
tax impact of the implementation of the provision in the Tax Cuts
and Jobs Act (the 2017 Tax Act) that requires capitalization and
amortization of research and development expenses for tax purposes
starting in 2022 and a net discrete tax benefit, partially offset
by the tax impact of the mix of earnings in higher tax
jurisdictions. The effective tax rate in Q4 2021 reflected a net
discrete tax benefit and the tax impact of acquired IPR&D and
development milestone charges.
In Q4 2022, net income and earnings per share (EPS) were
$1.94 billion and $2.14, respectively, compared with $1.73 billion and $1.90 in Q4 2021. Q4 2022 EPS was inclusive of
$0.23 of acquired IPR&D and
development milestone charges compared with $0.39 in Q4 2021.
Fourth-Quarter Non-GAAP Measures
On a non-GAAP basis, Q4 2022 gross margin decreased 3% to
$5.88 billion compared with Q4 2021.
Gross margin as a percent of revenue was 80.5%, an increase of 4.4
percentage points compared with Q4 2021. The increase in gross
margin percent was primarily driven by lower sales of COVID-19
antibodies, partially offset by lower realized prices and increased
expenses due to inflation and logistics costs.
Operating income on a non-GAAP basis decreased $160.5 million, or 7%, to $2.00 billion in Q4 2022 compared with Q4 2021.
Operating margin percent was 27.4% on a non-GAAP basis, which
includes a negative impact of approximately 330 basis points
attributed to acquired IPR&D and development milestone
charges.
The effective tax rate on a non-GAAP basis was 7.3% in Q4 2022
compared with 8.5% in Q4 2021. The lower effective tax rate for Q4
2022 reflects the favorable tax impact of the implementation of the
2017 Tax Act and a higher net discrete tax benefit compared to the
same period in 2021, partially offset by the tax impact of the mix
of earnings in higher tax jurisdictions.
On a non-GAAP basis, Q4 2022 net income and EPS were
$1.89 billion and $2.09, respectively, compared with $1.97 billion and $2.17 in Q4 2021. Q4 2022 non-GAAP EPS was
inclusive of $0.23 of acquired
IPR&D and development milestone charges compared with
$0.39 in Q4 2021.
For further detail on non-GAAP measures, see the reconciliation
below as well as the "Reconciliation of GAAP Reported to Selected
Non-GAAP Adjusted Information (Unaudited)" table later in this
press release.
|
Fourth
Quarter
|
|
2022
|
|
2021
|
% Change
|
Earnings per share
(reported)
|
$
2.14
|
|
$
1.90
|
13 %
|
Amortization of
intangible assets
|
.11
|
|
.19
|
|
Asset impairment,
restructuring and other special charges
|
.03
|
|
.09
|
|
Net (gains) losses on
investments in equity securities
|
(.19)
|
|
.06
|
|
Partial reversal of
COVID-19 antibodies inventory charges
|
—
|
|
(.07)
|
|
Earnings per share
(non-GAAP)
|
$
2.09
|
|
$
2.17
|
(4) %
|
Numbers may not add due
to rounding.
|
|
|
|
|
|
|
|
|
|
Acquired IPR&D and
development milestone charges
|
.23
|
|
.39
|
(41) %
|
Selected Revenue Highlights
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Fourth
Quarter
|
|
Full Year
|
Selected
Products
|
2022
|
|
2021
|
|
% Change
|
|
2022
|
|
2021
|
|
% Change
|
Trulicity
|
$ 1,936.2
|
|
$ 1,883.7
|
|
3 %
|
|
$ 7,439.7
|
|
$ 6,471.9
|
|
15 %
|
Verzenio
|
808.0
|
|
404.1
|
|
100 %
|
|
2,483.5
|
|
1,349.9
|
|
84 %
|
Taltz
|
707.8
|
|
647.4
|
|
9 %
|
|
2,482.0
|
|
2,212.8
|
|
12 %
|
Jardiance(a)
|
612.3
|
|
431.9
|
|
42 %
|
|
2,066.0
|
|
1,490.8
|
|
39 %
|
Humalog(b)
|
548.3
|
|
601.7
|
|
(9) %
|
|
2,060.6
|
|
2,453.0
|
|
(16) %
|
COVID-19
antibodies(c)
|
38.0
|
|
1,063.1
|
|
(96) %
|
|
2,023.5
|
|
2,239.3
|
|
(10) %
|
Humulin®
|
234.0
|
|
298.8
|
|
(22) %
|
|
1,019.4
|
|
1,222.6
|
|
(17) %
|
Cyramza
|
277.8
|
|
270.4
|
|
3 %
|
|
971.4
|
|
1,033.0
|
|
(6) %
|
Alimta
|
236.6
|
|
434.9
|
|
(46) %
|
|
927.7
|
|
2,061.4
|
|
(55) %
|
Olumiant(d)
|
205.8
|
|
306.0
|
|
(33) %
|
|
830.5
|
|
1,115.1
|
|
(26) %
|
Basaglar®
|
201.7
|
|
242.4
|
|
(17) %
|
|
760.4
|
|
892.5
|
|
(15) %
|
Emgality
|
175.6
|
|
161.5
|
|
9 %
|
|
650.9
|
|
577.2
|
|
13 %
|
Forteo®
|
160.0
|
|
184.0
|
|
(13) %
|
|
613.1
|
|
801.9
|
|
(24) %
|
Mounjaro
|
279.2
|
|
—
|
|
NM
|
|
482.5
|
|
—
|
|
NM
|
Tyvyt
|
57.5
|
|
77.8
|
|
(26) %
|
|
293.3
|
|
418.1
|
|
(30) %
|
Retevmo
|
64.6
|
|
38.6
|
|
67 %
|
|
191.9
|
|
114.7
|
|
67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
7,301.8
|
|
7,999.9
|
|
(9) %
|
|
28,541.4
|
|
28,318.4
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Jardiance includes Glyxambi®, Synjardy® and
Trijardy® XR
(b) Humalog
includes Insulin Lispro
(c) COVID-19
antibodies include sales for bamlanivimab administered alone, for
bamlanivimab and etesevimab
administered together, and for bebtelovimab, and were made pursuant
to EUAs or similar regulatory authorizations
(d) Olumiant
includes sales of baricitinib that were made pursuant to EUA
or similar regulatory authorizations
NM – not
meaningful
|
Trulicity
For Q4 2022, worldwide Trulicity revenue was $1.94 billion, an increase of 3% compared with Q4
2021. U.S. revenue increased 5% to $1.53
billion, driven by increased demand, partially offset by
lower realized prices. Revenue outside the U.S. was $409.8 million, a decrease of 6%, driven by the
unfavorable impact of foreign exchange rates and to a lesser
extent, lower realized prices, partially offset by increased
demand. On a constant currency basis, revenue outside the U.S.
increased 8%. Lilly experienced intermittent delays in fulfilling
certain U.S. Trulicity orders during Q4 2022. Actions to manage
strong demand across the company's incretin portfolio, including
measures to minimize existing patient impact in international
markets, also affected volume.
Verzenio
For Q4 2022, worldwide Verzenio revenue increased 100% compared
with Q4 2021 to $808.0 million. U.S.
revenue was $552.7 million, an
increase of 119%, primarily driven by increased demand.
Revenue outside the U.S. was $255.3
million, an increase of 69%, driven by increased demand,
partially offset by the unfavorable impact of foreign exchange
rates and lower realized prices primarily due to the impact of the
NRDL formulary in China.
Taltz
For Q4 2022, worldwide Taltz revenue increased 9% compared with
Q4 2021 to $707.8 million. U.S.
revenue increased 9% to $512.0 million, driven by increased demand,
partially offset by lower realized prices. Revenue outside the U.S.
increased 11% to $195.8 million,
driven by increased volume, partially offset by the unfavorable
impact of foreign exchange rates and lower realized prices.
Jardiance
The company's worldwide Jardiance revenue for Q4 2022 was
$612.3 million, an increase of 42%
compared with Q4 2021. U.S. revenue increased 51% to $363.1 million, primarily driven by increased
demand and to a lesser extent, an increased Q4 2022 royalty from
Boehringer Ingelheim for exceeding certain annual thresholds.
Revenue outside the U.S. was $249.2
million, an increase of 30%, primarily driven by increased
demand, partially offset by the unfavorable impact of foreign
exchange rates.
Jardiance is part of the company's alliance with Boehringer
Ingelheim. Lilly reports as revenue royalties received on net sales
of Jardiance.
Humalog
For Q4 2022, worldwide Humalog revenue decreased 9% compared
with Q4 2021 to $548.3 million. U.S.
revenue increased 8% to $336.0
million, driven by higher realized prices due to changes in
estimates for rebates and discounts in both periods. Revenue
outside the U.S. decreased 27% to $212.3
million, driven by lower realized prices due to the impact
of VBP in China and the
unfavorable impact of foreign exchange rates.
Alimta
For Q4 2022, worldwide Alimta revenue decreased 46% compared
with Q4 2021 to $236.6 million. U.S.
revenue decreased 83% to $53.2 million, driven by decreased demand
due to generic competition. Revenue outside the U.S. increased 63%
to $183.4 million, driven by
approximately $130 million of
one-time revenue associated with the sale of the company's rights
to Alimta in Korea and Taiwan,
partially offset by decreased demand due to generic competition,
lower realized prices, and the unfavorable impact of foreign
exchange rates.
The company expects continued volume and revenue decline for
Alimta as a result of generic competition due to the loss of patent
exclusivity in major markets.
Olumiant
For Q4 2022, worldwide Olumiant revenue decreased 33% compared
with Q4 2021 to $205.8 million. U.S.
revenue decreased 50% to $43.5
million, driven by a decline in utilization for COVID-19
treatment, partially offset by increased utilization for the
treatment of alopecia areata. Revenue outside the U.S. was
$162.3 million, a decrease of 26%,
driven by the unfavorable impact of foreign exchange rates and a
decline in utilization for COVID-19 treatment.
Emgality
For Q4 2022, Emgality generated worldwide revenue of
$175.6 million, an increase of 9%
compared with Q4 2021. U.S. revenue was $132.0 million, an increase of 9%, driven by
increased demand and higher realized prices, partially offset by
wholesaler buying patterns. Revenue outside the U.S. was
$43.7 million, an increase of 8%,
primarily driven by increased volume, partially offset by the
unfavorable impact of foreign exchange rates and lower realized
prices.
Mounjaro
For Q4 2022, worldwide Mounjaro revenue was $279.2 million. U.S. revenue was $256.7 million. Mounjaro launched in the U.S. for
the treatment of type 2 diabetes in June
2022.
Tyvyt
For Q4 2022, the company's Tyvyt revenue in China was $57.5
million, a decrease of 26% compared with Q4 2021, driven by
the impact of the NRDL formulary in China as well as increased competitive
pressures and impacts from COVID-19 disruptions.
Tyvyt is part of the company's alliance with Innovent. Lilly
reports total sales of Tyvyt made by Lilly as revenue, with
payments made to Innovent for its portion of the gross margin
reported as cost of sales. Lilly also reports as revenue a portion
of the gross margin for Tyvyt sales made by Innovent.
2023 Financial Guidance
The company has updated its tax rate and EPS guidance and
reaffirmed all other elements of its 2023 financial guidance. The
previous tax rate guidance of approximately 16% for 2023 assumed
deferral or repeal of the 2017 Tax Act provision that requires
capitalization of research and development expenses. Such a
deferral or repeal did not occur in 2022. Given the uncertainty as
to whether any change to this provision will be enacted in 2023,
the company has updated the tax rate guidance to be approximately
13% and 2023 EPS guidance has been increased to the range of
$7.90 to $8.10 on a reported basis and $8.35 to $8.55 on a
non-GAAP basis. The company's 2023 financial guidance reflects
adjustments shown in the reconciliation table below.
|
2023
Expectations
|
Earnings per share
(reported)
|
$7.90 to
$8.10
|
Amortization of
intangible assets
|
.45
|
Earnings per share
(non-GAAP)
|
$8.35 to
$8.55
|
Numbers may not add due
to rounding
|
|
|
|
The company's 2023
financial guidance does not include any acquired IPR&D and
development milestone charges either incurred or that may
potentially be incurred in 2023.
|
|
|
The following table summarizes the company's updated 2023
financial guidance:
|
2023
Guidance
|
|
Prior
|
|
Updated
|
Revenue
|
$30.3 to $30.8
billion
|
|
Unchanged
|
|
|
|
|
Gross Margin % of
Revenue (reported)
|
Approx. 77%
|
|
Unchanged
|
Gross Margin % of
Revenue (non-GAAP)
|
Approx. 79%
|
|
Unchanged
|
|
|
|
|
Marketing, Selling
& Administrative
|
$6.9 to $7.1
billion
|
|
Unchanged
|
|
|
|
|
Research &
Development
|
$8.2 to $8.4
billion
|
|
Unchanged
|
|
|
|
|
Other
Income/(Expense)
|
$(200) to $(100)
million
|
|
Unchanged
|
|
|
|
|
Tax Rate
|
Approx. 16%
|
|
Approx. 13%
|
|
|
|
|
Earnings per Share
(reported)
|
$7.65 to
$7.85
|
|
$7.90 to
$8.10
|
Earnings per Share
(non-GAAP)
|
$8.10 to
$8.30
|
|
$8.35 to
$8.55
|
|
|
|
|
Non-GAAP guidance
reflects adjustments presented in the earnings per share table
above.
|
Webcast of Conference Call
As previously announced, investors and the general public can
access a live webcast of the Q4 2022 financial results conference
call through a link on Lilly's website at
investor.lilly.com/webcasts-and-presentations. The conference call
will begin at 10 a.m. Eastern time
today and will be available for replay via the website.
Non-GAAP Financial Measures
Certain financial information for 2022 and 2021 is presented on
both a reported and a non-GAAP basis. Some numbers in this press
release may not add due to rounding. Reported results were prepared
in accordance with U.S. generally accepted accounting principles
(GAAP) and include all revenue and expenses recognized during the
periods. Non-GAAP measures reflect adjustments for the items
described in the reconciliation tables later in the release. This
press release and related materials provide certain GAAP and
non-GAAP figures excluding the impact of foreign exchange rates.
Lilly recalculates current period figures on a constant currency
basis by keeping constant the exchange rates from the base period.
Beginning in 2022, presentations of non-GAAP financial measures do
not include adjustments for upfront charges and development
milestones related to acquired IPR&D. Non-GAAP financial
measures for Q4 and fiscal year 2021 have been adjusted to reflect
this updated presentation. The company's 2023 financial guidance is
being provided on both a reported and a non-GAAP basis. The
non-GAAP measures are presented to provide additional insights into
the underlying trends in the company's business.
About Lilly
Lilly unites caring with discovery to create medicines that make
life better for people around the world. We've been pioneering
life-changing discoveries for nearly 150 years, and today our
medicines help more than 47 million people across the globe.
Harnessing the power of biotechnology, chemistry and genetic
medicine, our scientists are urgently advancing new discoveries to
solve some of the world's most significant health challenges,
redefining diabetes care, treating obesity and curtailing its most
devastating long-term effects, advancing the fight against
Alzheimer's disease, providing solutions to some of the most
debilitating immune system disorders, and transforming the most
difficult-to-treat cancers into manageable diseases. With each step
toward a healthier world, we're motivated by one thing: making life
better for millions more people. That includes delivering
innovative clinical trials that reflect the diversity of our world
and working to ensure our medicines are accessible and affordable.
To learn more, visit Lilly.com and
Lilly.com/newsroom. F-LLY
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains management's current intentions and
expectations for the future, all of which are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. The
words "estimate", "project", "intend", "expect", "believe",
"target", "anticipate" and similar expressions are intended to
identify forward-looking statements. Actual results may differ
materially due to various factors. The following include some but
not all of the factors that could cause actual results or events to
differ materially from those anticipated, including the significant
costs and uncertainties in the pharmaceutical research and
development process, including with respect to the timing and
process of obtaining regulatory approvals; the impact and outcome
of acquisitions and business development transactions and related
integration costs; the expiration of intellectual property
protection for certain of the company's products and competition
from generic and/or biosimilar products; the company's ability to
protect and enforce patents and other intellectual property;
changes in patent law or regulations related to data package
exclusivity; competitive developments affecting current products
and the company's pipeline; market uptake of recently launched
products; information technology system inadequacies, breaches, or
operating failures; unauthorized access, disclosure,
misappropriation, or compromise of confidential information or
other data stored in the company's information technology systems,
networks, and facilities, or those of third parties with whom the
company shares its data; the impact of global macroeconomic
conditions, trade disruptions, disputes, unrest, war, regional
dependencies, or other costs, uncertainties and risks related to
engaging in business globally; unexpected safety or efficacy
concerns associated with the company's products; litigation,
investigations, or other similar proceedings involving past,
current, or future products or commercial activities as the company
is largely self-insured; issues with product supply and regulatory
approvals stemming from manufacturing difficulties, disruptions, or
shortages, including as a result of unpredictability and
variability in demand, labor shortages, third-party performance,
quality, or regulatory actions related to our facilities;
dependence on certain products for a significant percentage of our
total revenue; reliance on third-party relationships and
outsourcing arrangements; the impact of public health outbreaks,
epidemics, or pandemics, such as the COVID-19 pandemic; regulatory
changes or other developments; regulatory actions regarding
operations and products; continued pricing pressures and the impact
of actions of governmental and private payers affecting pricing of,
reimbursement for, and access to pharmaceuticals; devaluations in
foreign currency exchange rates or changes in interest rates and
inflation; changes in tax law, tax rates, or events that differ
from the company's assumptions related to tax positions; asset
impairments and restructuring charges; changes in accounting and
reporting standards promulgated by the Financial Accounting
Standards Board and the Securities and Exchange Commission (SEC);
regulatory compliance problems or government investigations; and
actual or perceived deviation from environmental-, social-, or
governance-related requirements or expectations. For additional
information about the factors that could cause actual results or
events to differ materially from forward-looking statements, please
see the company's latest Form 10-K and subsequent Forms 8-K and
10-Q filed with the SEC. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this
release. Except as is required by law, the company expressly
disclaims any obligation to publicly release any revisions to
forward-looking statements to reflect events after the date of this
release.
Alimta® (pemetrexed disodium, Lilly)
Basaglar® (insulin glargine injection, Lilly)
Cyramza® (ramucirumab, Lilly)
Emgality® (galcanezumab-gnlm, Lilly)
Forteo® (teriparatide of recombinant DNA origin
injection, Lilly)
Glyxambi® (empagliflozin/linagliptin, Boehringer
Ingelheim)
Humalog® (insulin lispro injection of recombinant DNA
origin, Lilly)
Humulin® (human insulin of recombinant DNA origin,
Lilly)
Jardiance® (empagliflozin, Boehringer Ingelheim)
Jaypirca™ (pirtobrutinib, Lilly)
Mounjaro® (tirzepatide injection, Lilly)
Olumiant® (baricitinib, Lilly)
Qbrexza® (glycopyrronium cloth, Dermira)
Retevmo® (selpercatinib, Lilly)
Synjardy® (empagliflozin/metformin, Boehringer
Ingelheim)
Taltz® (ixekizumab, Lilly)
Trijardy® XR (empagliflozin/linagliptin/metformin
hydrochloride extended release tablets, Boehringer Ingelheim)
Trulicity® (dulaglutide, Lilly)
Tyvyt® (sintilimab injection, Innovent)
Verzenio® (abemaciclib, Lilly)
Third party trademarks used herein are trademarks of their
respective owners.
Eli Lilly and
Company
Operating Results
(Unaudited) – REPORTED
(Dollars in millions,
except per share data)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
% Chg.
|
|
2022
|
|
2021
|
|
% Chg.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
7,301.8
|
$
|
7,999.9
|
|
(9) %
|
$
|
28,541.4
|
$
|
28,318.4
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,548.1
|
|
2,050.2
|
|
(24) %
|
|
6,629.8
|
|
7,312.8
|
|
(9) %
|
Research and
development
|
|
1,995.9
|
|
1,898.3
|
|
5 %
|
|
7,190.8
|
|
6,930.7
|
|
4 %
|
Marketing, selling and
administrative
|
|
1,643.2
|
|
1,592.0
|
|
3 %
|
|
6,440.4
|
|
6,431.6
|
|
— %
|
Acquired IPR&D and
development
milestones
|
|
240.1
|
|
437.7
|
|
(45) %
|
|
908.5
|
|
970.1
|
|
(6) %
|
Asset impairment,
restructuring and
other special charges
|
|
38.1
|
|
104.5
|
|
(64) %
|
|
244.6
|
|
316.1
|
|
(23) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
1,836.4
|
|
1,917.2
|
|
(4) %
|
|
7,127.3
|
|
6,357.1
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense)
|
|
(58.5)
|
|
(74.0)
|
|
|
|
(268.8)
|
|
(314.4)
|
|
|
Net other income
(expense)
|
|
318.5
|
|
(3.3)
|
|
|
|
(52.1)
|
|
112.8
|
|
|
Other income
(expense)
|
|
260.0
|
|
(77.3)
|
|
NM
|
|
(320.9)
|
|
(201.6)
|
|
59 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
2,096.4
|
|
1,839.9
|
|
14 %
|
|
6,806.4
|
|
6,155.5
|
|
11 %
|
Income tax
expense
|
|
158.7
|
|
113.8
|
|
39 %
|
|
561.6
|
|
573.8
|
|
(2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
1,937.7
|
$
|
1,726.1
|
|
12 %
|
$
|
6,244.8
|
$
|
5,581.7
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
$
|
2.14
|
$
|
1.90
|
|
13 %
|
$
|
6.90
|
$
|
6.12
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
.98
|
|
.85
|
|
15 %
|
$
|
3.92
|
$
|
3.40
|
|
15 %
|
Weighted-average shares
outstanding
(thousands) - diluted
|
|
904,732
|
|
909,555
|
|
|
|
904,619
|
|
911,681
|
|
|
Eli Lilly and
Company
|
|
|
Reconciliation of GAAP
Reported to Selected Non-GAAP Adjusted Information
(Unaudited)
|
|
|
(Dollars in millions,
except per share data)
|
|
|
|
|
|
|
Three Months
Ended
December 31,
2022
|
|
Three Months
Ended
December 31,
2021
|
|
|
|
GAAP
Reported
|
Adjustments(b)
|
Non-GAAP
Adjusted(a)
|
|
GAAP
Reported
|
Adjustments(c)
|
Non-GAAP
Adjusted(a)
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
$
|
1,548.1
|
$
|
(124.1)
|
$
|
1,424.0
|
$
|
2,050.2
|
$
|
(137.4)
|
$
|
1,912.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment,
restructuring and other
special charges
|
|
38.1
|
|
(38.1)
|
|
—
|
|
104.5
|
|
(104.5)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
260.0
|
|
(216.5)
|
|
43.5
|
|
(77.3)
|
|
70.6
|
|
(6.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
158.7
|
|
(9.7)
|
|
149.0
|
|
113.8
|
|
68.1
|
|
181.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,937.7
|
|
(44.6)
|
|
1,893.1
|
|
1,726.1
|
|
244.4
|
|
1,970.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
2.14
|
|
(0.05)
|
|
2.09
|
|
1.90
|
|
0.27
|
|
2.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numbers may not add due to rounding.
The table above reflects only line items with non-GAAP
adjustments.
(a)
|
The company uses
non-GAAP financial measures that differ from financial statements
reported in conformity with U.S. generally accepted accounting
principles (GAAP). The company's non-GAAP measures adjust reported
results to exclude amortization of intangibles and other items that
are typically highly variable, difficult to predict, and of a size
that could have a substantial impact on the company's reported
operations for a period. The company believes that these non-GAAP
measures provide useful information to investors. Among other
things, they may help investors evaluate the company's ongoing
operations. They can also assist in making meaningful
period-over-period comparisons and in identifying operating trends
that would otherwise be masked or distorted by the items subject to
the adjustments. Management uses these non-GAAP measures internally
to evaluate the performance of the business, including to allocate
resources and to evaluate results relative to incentive
compensation targets. Investors should consider these non-GAAP
measures in addition to, not as a substitute for or superior to,
measures of financial performance prepared in accordance with
GAAP.
|
(b)
|
Adjustments to certain
GAAP reported measures for the three months ended December 31,
2022, include the following:
|
|
|
(Dollars in millions,
except per share data)
|
Amortization(i)
|
Equity
investments(ii)
|
Other specified
items(iii)
|
Total
|
Cost of
sales
|
$
(124.1)
|
$
—
|
$
—
|
(124.1)
|
|
|
|
|
|
Asset impairment,
restructuring and other
special charges
|
—
|
—
|
(38.1)
|
(38.1)
|
|
|
|
|
|
Other income
(expense)
|
—
|
(216.5)
|
—
|
(216.5)
|
|
|
|
|
|
Income tax
expense
|
25.7
|
(43.7)
|
8.3
|
(9.7)
|
|
|
|
|
|
Net income
|
98.4
|
(172.8)
|
29.8
|
(44.6)
|
|
|
|
|
|
Earnings per share -
diluted
|
0.11
|
(0.19)
|
0.03
|
(0.05)
|
Numbers may not add due to rounding.
The table above reflects only line items with non-GAAP
adjustments.
-
- Exclude amortization of intangibles primarily associated with
costs of marketed products acquired or licensed from third
parties.
- Exclude net gains on investments in equity securities.
- Exclude primarily the asset impairment, restructuring and other
special charges primarily related to acquisition and integration
costs associated with closing of the acquisition of Akouos,
Inc.
(c)
|
Adjustments to certain
GAAP reported measures for the three months ended December 31,
2021, include the following:
|
|
|
(Dollars in millions,
except per share data)
|
Amortization
(i)
|
Equity
investments(ii)
|
Other specified
items(iii)
|
Total
|
Cost of
sales
|
$
(219.9)
|
$
—
|
$
82.5
|
(137.4)
|
|
|
|
|
|
Asset impairment,
restructuring and other
special charges
|
—
|
—
|
(104.5)
|
(104.5)
|
|
|
|
|
|
Other income
(expense)
|
—
|
70.6
|
—
|
70.6
|
|
|
|
|
|
Income tax
expense
|
46.0
|
14.5
|
7.6
|
68.1
|
|
|
|
|
|
Net income
|
173.9
|
56.1
|
14.5
|
244.4
|
|
|
|
|
|
Earnings per share -
diluted
|
0.19
|
0.06
|
0.02
|
0.27
|
Numbers may not add due to rounding.
The table above reflects only line items with non-GAAP
adjustments.
-
- Exclude amortization of intangibles primarily associated with
costs of marketed products acquired or licensed from third
parties.
- Exclude net losses on investments in equity securities.
- Exclude partial reversal of COVID-19 antibodies inventory
charge and asset impairment, restructuring and other special
charges primarily related to the impairment of a contract-based
intangible asset from our acquisition of Loxo Oncology.
Eli Lilly and
Company
|
|
|
Reconciliation of GAAP
Reported to Selected Non-GAAP Adjusted Information
(Unaudited)
|
|
|
(Dollars in millions,
except per share data)
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
2022
|
|
Twelve Months
Ended
December 31,
2021
|
|
|
|
GAAP
Reported
|
Adjustments(b)
|
Non-GAAP
Adjusted(a)
|
|
GAAP
Reported
|
Adjustments(c)
|
Non-GAAP
Adjusted(a)
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
$
|
6,629.8
|
$
|
(574.1)
|
$
|
6,055.7
|
$
|
7,312.8
|
$
|
(908.8)
|
$
|
6,404.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment,
restructuring and other
special charges
|
|
244.6
|
|
(244.6)
|
|
—
|
|
316.1
|
|
(316.1)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
(320.9)
|
|
385.9
|
|
65.0
|
|
(201.6)
|
|
227.2
|
|
25.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
561.6
|
|
263.0
|
|
824.6
|
|
573.8
|
|
300.1
|
|
873.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
6,244.8
|
|
941.6
|
|
7,186.4
|
|
5,581.7
|
|
1,152.0
|
|
6,733.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
-
diluted
|
|
6.90
|
|
1.04
|
|
7.94
|
|
6.12
|
|
1.27
|
|
7.39
|
Numbers may not add due to rounding.
The table above reflects only line items with non-GAAP
adjustments.
(a)
|
The company uses
non-GAAP financial measures that differ from financial statements
reported in conformity with U.S. generally accepted accounting
principles (GAAP). The company's non-GAAP measures adjust reported
results to exclude amortization of intangibles and other items that
are typically highly variable, difficult to predict, and of a size
that could have a substantial impact on the company's reported
operations for a period. The company believes that these non-GAAP
measures provide useful information to investors. Among other
things, they may help investors evaluate the company's ongoing
operations. They can also assist in making meaningful
period-over-period comparisons and in identifying operating trends
that would otherwise be masked or distorted by the items subject to
the adjustments. Management uses these non-GAAP measures internally
to evaluate the performance of the business, including to allocate
resources and to evaluate results relative to incentive
compensation targets. Investors should consider these non-GAAP
measures in addition to, not as a substitute for or superior to,
measures of financial performance prepared in accordance with
GAAP.
|
(b)
|
Adjustments to certain
GAAP reported measures for the twelve months ended December 31,
2022, include the following:
|
|
|
(Dollars in millions,
except per share data)
|
Amortization(i)
|
Equity
investments(ii)
|
Other specified
items(iii)
|
Total
|
Cost of
sales
|
(574.1)
|
—
|
—
|
(574.1)
|
|
|
|
|
|
Asset impairment,
restructuring and other
special charges
|
—
|
—
|
(244.6)
|
(244.6)
|
|
|
|
|
|
Other income
(expense)
|
—
|
385.9
|
—
|
385.9
|
|
|
|
|
|
Income tax
expense
|
118.8
|
85.6
|
58.5
|
263.0
|
|
|
|
|
|
Net income
|
455.3
|
300.3
|
186.1
|
941.6
|
|
|
|
|
|
Earnings per share –
diluted
|
0.50
|
0.33
|
0.21
|
1.04
|
Numbers may not add due to rounding.
The table above reflects only line items with non-GAAP
adjustments.
-
- Exclude amortization of intangibles primarily associated with
costs of marketed products acquired or licensed from third
parties.
- Exclude net losses on investments in equity securities.
- Exclude primarily the intangible asset impairment for GBA1 Gene
Therapy (PR001) due to changes in estimated launch timing, as well
as acquisition and integration costs associated with closing of the
acquisition of Akouos, Inc.
(c)
|
Adjustments to certain
GAAP reported measures for the twelve months ended December 31,
2021, include the following:
|
|
|
(Dollars in millions,
except
per share data)
|
Amortization(i)
|
Equity
investments(ii)
|
Repurchase of
Debt(iii)
|
Other specified
items(iv)
|
Total
|
Cost of
sales
|
$
(614.9)
|
$
—
|
$
—
|
$
(293.9)
|
(908.8)
|
|
|
|
|
|
|
Asset impairment,
restructuring and other
special charges
|
—
|
—
|
—
|
(316.1)
|
(316.1)
|
|
|
|
|
|
|
Other income
(expense)
|
—
|
(178.0)
|
405.2
|
—
|
227.2
|
|
|
|
|
|
|
Income tax
expense
|
127.8
|
(34.4)
|
85.1
|
121.5
|
300.1
|
|
|
|
|
|
|
Net income
|
487.1
|
(143.5)
|
320.1
|
488.5
|
1,152.0
|
|
|
|
|
|
|
Earnings per share
-
diluted
|
0.53
|
(0.16)
|
0.35
|
0.54
|
1.27
|
Numbers may not add due to rounding.
The table above reflects only line items with non-GAAP
adjustments.
-
- Exclude amortization of intangibles primarily associated with
costs of marketed products acquired or licensed from third
parties.
- Exclude net gains on investments in equity securities.
- Exclude charge related to the repurchase of higher-cost
debt.
- Exclude COVID-19 antibodies inventory charge and asset
impairment, restructuring and other special charges primarily
related to an intangible asset impairment resulting from the sale
of rights to Qbrexza®, the impairment of a
contract-based intangible asset from our acquisition of Loxo
Oncology, as well as acquisition and integration costs associated
with the acquisition of Prevail Therapeutics Inc.
Refer
to:
|
Jordan Bishop;
jordan.bishop@lilly.com; (317) 473-5712 (Media)
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Joe Fletcher;
jfletcher@lilly.com; (317) 296-2884 (Investors)
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multimedia:https://www.prnewswire.com/news-releases/lilly-reports-fourth-quarter-2022-financial-results-core-business-growth-and-pipeline-advancements-support-strong-long-term-outlook-301736812.html
SOURCE Eli Lilly and Company