What caused Eli Lilly's operating profit surge in late 2024?

Eli Lilly's operating profit surge in late 2024 can be attributed to several key factors:

1. Revenue Growth from Key Drugs: The company's total revenue increased to $11.44 billion in Q3 2024, up from the previous year's $10.21 billion. This growth was primarily driven by the sales of two key drugs, Mounjaro and Zepbound. Mounjaro, a diabetes treatment, generated $11.5 billion in sales for the year 2024, while Zepbound, an anti-obesity drug, contributed $4.9 billion to the annual revenue. These drugs belong to the GLP-1 class of treatments, which mimic gut hormones that regulate blood sugar and curb appetite. They have experienced significant demand, with Morgan Stanley analysts projecting the global market for these drugs to reach $105 billion by 2030.
2. Strategic Investments and Pipeline Developments: Eli Lilly has made strategic investments in manufacturing and R&D. The company invested $2 billion in Ireland and $4.5 billion for the Lilly Medicine Foundry in Indiana. These investments have positioned the company for continued growth and have been critical in supporting the development of its pipeline of treatments.
3. International Market Expansion: The company is expanding its international market access, which is projected to drive growth in various regions, including the U.K., Germany, Japan, and self-pay markets like the U.A.E. and Saudi Arabia. This expansion is expected to further increase the demand for Eli Lilly's products and contribute to the company's revenue and profit growth.

In conclusion, Eli Lilly's operating profit surge in late 2024 can be attributed to a combination of increased sales from key drugs, strategic investments, and international market expansion. These factors have collectively contributed to the company's strong financial performance and growth prospects.