What impacted Eli Lilly's research and development costs in 2024?

Eli Lilly's research and development (R&D) costs in 2024 were impacted by several key factors:

1. **Strategic Investments**: The company significantly increased its R&D expenses due to investments in both ongoing and new late-phase opportunities. This indicates a strategic move to bolster its drug pipeline and prepare for future growth.
2. **Acquisitions**: The recognition of acquired in-process research and development (IPR&D) charges, primarily from the Morphic Therapeutics acquisition, contributed to the rise in R&D expenses. These charges reflect the costs associated with acquiring intellectual property and technologies that enhance Lilly's pipeline.
3. **Portfolio Expansion**: The expansion of manufacturing facilities and the announcement of a $4.5 billion research facility, the Lilly Medicine Foundry, suggest a long-term commitment to R&D. While these investments may not immediately impact the financials, they will influence costs in the coming years as these facilities are brought online.
4. **Regulatory Approvals and Clinical Trials**: The company's achievements in regulatory approvals, such as the FDA approval of Kisunla in the US, Japan, and Great Britain, and the approval of Eliquis in the US, indicate ongoing R&D efforts and the associated costs of clinical trials and regulatory submissions.

In summary, Eli Lilly's R&D costs in 2024 were influenced by strategic investments, acquisitions, facility expansions, and the ongoing development of new treatments. These activities are critical for maintaining a competitive edge in the pharmaceutical sector and are reflected in the company's financial statements.