Eli Lilly's gross profit growth in 2024 was driven by several key factors:
- Successful Product Launches: The company's gross profit growth was significantly boosted by the launch of its blockbuster diabetes and weight-loss drug, Mounjaro. Mounjaro, which belongs to the GLP-1 class of treatments, generated $11.5 billion in sales in 202412. This drug, along with Zepbound, contributed to a strong financial performance, with product revenue and earnings per share exceeding internal targets3.
- Market Expansion and Strategic Pricing: Eli Lilly's expansion into the Indian market with the launch of Mounjaro is expected to further boost its gross profit growth. The drug is priced significantly lower in India than in the US, which is expected to drive demand and sales in the country45. The company's strategic pricing and market expansion efforts have been successful in increasing its market share and revenue.
- Increased Manufacturing Capacity: The company's investment in increasing manufacturing capacity is expected to support continued growth in 2025. This includes a planned 60% increase in production capacity, which is likely to lead to higher gross profits9.
- Strong Financial Performance: Eli Lilly's financial performance in 2024 was robust, with revenue growth of 32% year-over-year, projected to reach approximately $45.0 billion9. This growth was driven by strong sales of Mounjaro and Zepbound, as well as expanded production capabilities.
In conclusion, Eli Lilly's gross profit growth in 2024 was primarily driven by the successful launch of Mounjaro, strategic market expansion, increased manufacturing capacity, and strong financial performance. These factors collectively contributed to the company's gross profit growth of 0.47% in 20241.
3/29/2025 12:10am
