Eli Lilly: A Buy After Strong Q4 Earnings?

Eli Lilly and Company (LLY) reported robust financial results for the fourth quarter of 2024, with revenue and earnings per share (EPS) growth outpacing previous quarters and the overall market performance. The company's strong performance was driven by the success of its new products, particularly Mounjaro and Zepbound, as well as the growth of its established products like Jardiance and Verzenio. Eli Lilly's pipeline progress, including the approval of Zepbound for obstructive sleep apnea and Omvoh for Crohn's disease, has also contributed to its future growth prospects.



Revenue in Q4 2024 increased 45% to $13.53 billion, driven by a 48% increase in volume, partially offset by a 4% decrease due to lower realized prices. The volume increase was driven by growth from Mounjaro and Zepbound, while lower realized prices were primarily driven by Mounjaro, partially offset by Zepbound and Humalog. New Products revenue grew by $3.15 billion to $5.64 billion in Q4 2024, led by Zepbound and Mounjaro. Growth Products revenue increased 13% to $5.95 billion in Q4 2024, driven by growth in Verzenio and Jardiance, partially offset by lower Trulicity sales.



Eli Lilly's pipeline progress, such as the approval of Zepbound for moderate-to-severe obstructive sleep apnea in adults with obesity and Omvoh for moderately to severely active Crohn's disease, has significantly impacted the company's valuation and future growth prospects. These approvals demonstrate the company's commitment to innovation and expanding its product portfolio into new therapeutic areas. The positive Phase 3 results for other pipeline candidates, such as pirtobrutinib for CLL/SLL and muvalaplin for heart disease, further strengthen Eli Lilly's pipeline and contribute to its future growth prospects.



In conclusion, Eli Lilly's strong Q4 earnings and revenue growth, driven by the success of its new products and pipeline progress, make a compelling case for investors to consider the stock as a buy. The company's commitment to innovation, expansion into new therapeutic areas, and strong pipeline position it well for future growth. However, investors should continue to monitor the company's progress and assess the market's reaction to its upcoming clinical trial data and regulatory decisions.