Latest news with #DaveRicks
Yahoo
6 days ago
- Business
- Yahoo
5 Revealing Analyst Questions From Eli Lilly's Q1 Earnings Call
Eli Lilly's first quarter saw rapid revenue growth, but the market responded negatively due to profit shortfalls and emerging competitive pressures. Management credited the surge in sales to the continued success of its diabetes and obesity medicines, particularly Mounjaro and Zepbound, which now account for a significant portion of total revenue. However, executives also acknowledged that higher marketing and R&D spending, as well as elevated costs tied to launching new products and acquiring late-stage assets, weighed on profitability. CEO Dave Ricks noted that the company is facing 'a lot of investor focus right now on tariffs and trade,' while CFO Lucas Montarce cited a '26% increase in marketing, selling and administrative expenses' as Lilly ramped up promotion for new launches. Is now the time to buy LLY? Find out in our full research report (it's free). Revenue: $12.73 billion vs analyst estimates of $12.62 billion (45.2% year-on-year growth, 0.9% beat) Adjusted EPS: $3.34 vs analyst expectations of $3.46 (3.4% miss) Adjusted EBITDA: $4.24 billion vs analyst estimates of $5.05 billion (33.3% margin, 16% miss) The company reconfirmed its revenue guidance for the full year of $59.5 billion at the midpoint Management lowered its full-year Adjusted EPS guidance to $21.53 at the midpoint, a 7.4% decrease Operating Margin: 29%, in line with the same quarter last year Market Capitalization: $711.3 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Asad Haider (Goldman Sachs) asked about the impact of the CVS formulary loss on Zepbound's market share and future PBM dynamics. CEO Dave Ricks replied that the affected segment is relatively small and emphasized a continued focus on broadening access rather than engaging in exclusive deals. Geoff Meacham (Citibank) questioned whether orforglipron could be developed for more indications beyond diabetes and obesity. Chief Scientific Officer Dr. Dan Skovronsky said oral convenience opens opportunities in broader indications, including primary care and combination therapies. Chris Schott (JPMorgan) sought clarity on the role of orforglipron in the obesity and diabetes markets relative to injectables. President of Cardiometabolic Health Patrik Jonsson noted that many patients prefer oral medications and that orforglipron could reach new populations with needle aversion. Tim Anderson (Bank of America) probed the likelihood and implications of more PBMs shifting to single-product formularies. Jonsson indicated such arrangements remain rare and that the company will continue to prioritize access over exclusivity. James Shin (Deutsche Bank) asked if the pricing headwind guidance remains intact after recent payer decisions. CFO Lucas Montarce confirmed that mid to high single-digit price headwinds are expected to persist and have been factored into the full-year outlook. In the coming quarters, the StockStory team will monitor (1) results from additional Phase 3 trials of orforglipron and their potential to reshape the diabetes and obesity markets; (2) trends in PBM and payer coverage, particularly any changes in employer opt-in rates or further formulary restrictions; and (3) the pace of manufacturing expansions and supply chain execution to meet rising demand. Progress on new product launches and updates on regulatory submissions will also serve as key markers of business momentum. Eli Lilly currently trades at $793, down from $896.02 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Irish Examiner
25-06-2025
- Business
- Irish Examiner
Eli Lilly: A Longtime partner on the Kinsale landscape
Many factors make Kinsale such a desirable place to live - a vibrant town, wonderful activities for all ages, a packed cultural calendar, and, most importantly, one of Ireland's best employers right on its doorstep. Eli Lilly has had a presence in Kinsale since 1978, a relationship that has seen both places prosper and grow across the decades. Lilly Kinsale is home to a unique 50-hectare manufacturing campus where the worldwide supply of active pharmaceutical ingredients for many of the company's innovative medicines is made. Dave Ricks, CEO, Eli Lilly and Company, at Lilly's production lab in the company's Kinsale manufacturing plant. Photographer: Paulo Nunes dos Santos/BloombergSR Uniquely in the biopharmaceutical industry in Ireland, the Lilly campus accommodates chemical synthesis, biotechnology and continuous manufacturing technologies - all inside one site boundary. Within the site, a highly talented team of over 1,300 employees are dedicated to the Lilly purpose of making life better for people around the world, through their commitment to making medicines with safety first and quality always. Indianapolis headquartered Eli Lilly recently chose Kinsale for a €732.4m expansion to help ensure a reliable supply of its products. The company also announced a €0.9bn expansion of its facility in Limerick. The investment is part of what company officials say is the most ambitious manufacturing expansion ever for the company, driven by the unprecedented demand for the active ingredient in its injected weight-loss and diabetes medicines. 'Kinsale has had a long, long history of chemical synthesis and lots of well-trained people,' said Eli Lilly's chief executive, Dave Ricks. 'It was a logical place to put that expansion.' The company has links with schools and colleges in Cork, encouraging more students into STEM subjects. It has a long-established relationship with University College Cork and funds three lectureships, scholarships, PhDs and prizes. Additionally, the Ports of Indiana and the Port of Cork signed a partnership agreement to explore the feasibility of an express container shipping service. Sandra Dinan is enjoying her current role as a process engineer in Small Molecule Manufacturing at Lilly in Kinsale, a world-leading innovative pharmaceutical company. She joined the Lilly Engineering Graduate Programme in September 2022 after completing a BEng (Hons) degree in Chemical and Biopharmaceutical Engineering at MTU. 'These investments will boost the production of some of our medicines, helping millions of people with diabetes, obesity and Alzheimer's disease live the healthiest lives possible,' said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. 'We won't stop there - these state-of-the-art facilities will also be equipped to support our promising pipeline molecules of the future.' Lilly remains dedicated to addressing major global health issues, and the Kinsale facility is pivotal to maintaining the safe and reliable supply of its diabetes and obesity medications. In parallel with its manufacturing growth, Lilly's Global Business Solutions centre in Cork has quadrupled employment levels since 2019, with over half of whom are working in clinical research and development. Lilly has a long-standing commitment to sustainability and respecting the local environment, establishing environmental programs across all sites in Ireland to monitor the quality of the ambient air, the flora and fauna and the local marine habitat. In Kinsale, Lilly has the single largest privately owned 26-acre solar farm in the Republic of Ireland, which powers a significant portion of the facility. The International Society for Pharmaceutical Engineering has recognised Eli Lilly Kinsale as the Overall Winner of the 2024 Facility of the Year Awards for its IE2b facility, marrying innovative, advanced technologies into a first-of-its-kind hybrid manufacturing platform to optimise synthetic peptide production for use in life-saving medications. The company's IE2b was recognised as a winner in the 2024 FOYA Innovation Category for its hybrid manufacturing platform, and underscores the importance of perseverance in innovation through adversity. The build started just as COVID-19 pandemic-related shutdowns began in Ireland, forcing the team to adjust their timelines and proceed with caution while developing the novel synthetic peptide manufacturing platform and constructing the new facility on an operational manufacturing campus. In close communication, Lilly's headquarters staff trialled the platform's miniaturised prototypes to inform design and construction, which IE2b staff later manufactured into the full-size versions on-site, all while the facility structure was being built. Despite the challenges of maintaining a global team project during the COVID-19 pandemic, the team maintained continuous collaboration, effective planning, and rigorous safety protocols. This resulted in the facility's completion on schedule, with no workplace-related COVID cases or significant safety disruptions after over 1.6 million construction hours. 'Designing this platform and constructing the resulting manufacturing facility presented more barriers than could be imagined, but we brought a group of fantastic people together who were ready to transform the status quo regarding traditional peptide-based medicine manufacturing concepts,' said Darragh McDonagh, Program Leader, Eli Lilly Kinsale. 'We are thrilled to be recognised as the 2024 FOYA Overall Winner, and it shines a light on our team's dedication to creating a novel industry-leading manufacturing facility that will ultimately bring a more reliable supply of medicine to our patients worldwide.' This €5 million solar energy development at the Eli Lilly plant at Dunderrow, near Kinsale, west Cork, is a joint venture between Eli Lilly and Enerpower. ELi Lilly Kinsale - Key Milestones: 1978 - The Lilly Kinsale site is purchased. 1981 - Production of small-molecule active pharmaceutical ingredients at Kinsale commences in March, after a three-year investment programme. 2006 - The site expands to participate earlier in the life-cycle of innovative medicines, contributing to the scale-up and preparation for launch of new medicines. Kinsale announced as the location for the manufacture of active ingredients for new large molecule biopharmaceutical medicines called monoclonal antibodies, becoming a dual manufacturing technology campus. 2010 - Kinsale becomes a centre of excellence for manufacturing scale-up of small molecule medicines in preparation for launch, involved in late-phase product development and process optimisation. 2017 - A need is identified for a pilot-scale biotechnology manufacturing facility to spearhead manufacturing innovation and productivity within the global Lilly biotechnology manufacturing network. 2019 - Lilly Kinsale commissions a new non-GMP pilot-scale biotechnology facility. The project team is recognised with the publication of a scientific paper in the journal 'Science', and wins the Process Innovation in the International Society of Pharmaceutical Engineers Facility of the Year Awards. 2021 - Lilly Kinsale wins Cork Chamber's Overall Company of the Year 2022 - The first production of a new type of active pharmaceutical ingredient, a 'synthetic peptide', is completed - another industry first in Ireland. 2024 – Lilly Kinsale's continuous manufacturing facility wins both the Innovation Category and Overall award at the global Facility of the Year Awards.
Yahoo
27-05-2025
- Business
- Yahoo
Here's How the Pharmaceutical Import Tariffs Could Affect Eli Lilly
Tariffs on pharmaceutical imports could hurt Lilly, especially with its dependence on products made in Ireland. However, Lilly might not feel much pain if the Trump administration gives enough time for drugmakers to boost U.S. manufacturing. The president's most favored nation drug pricing could also be problematic for Lilly, but perhaps not as much as feared. 10 stocks we like better than Eli Lilly › Eli Lilly's (NYSE: LLY) share price soared during the first Trump administration. That momentum continued with Joe Biden in the White House. However, it's a much different story so far in Trump's second term. The big pharma stock has taken investors on a roller coaster ride that's on a downward swing right now. Why has Lilly's stock been so volatile? The tariffs on pharmaceutical imports threatened by President Trump stand out as one key factor. Here's how those tariffs could affect Eli Lilly. The White House hasn't implemented tariffs on imported drugs yet. However, President Trump has publicly stated that pharmaceutical import tariffs are on the way. Earlier this year, he proposed levying 25% tariffs on imported drugs. Lilly CEO Dave Ricks acknowledged in his company's first-quarter earnings call on May 3 that expanding tariffs "would have a negative effect on Lilly and for our industry." He didn't provide details, though, on how much of an impact tariffs might have on Lilly. The U.S. imports more pharmaceutical products from Ireland than from any other country -- nearly $50 billion last year. It won't be surprising if the Trump administration especially targets those imports. If so, that could present a big problem for Lilly. Ricks said in the Q1 call that most of his company's product sourcing outside the U.S. comes from Ireland. Lilly reported roughly $3.2 billion of long-lived assets, such as property and equipment, in Ireland at the end of 2024. Although that figure was less than one-fourth the value of long-lived assets in the U.S., it was greater than the drugmaker's total for the rest of the world combined. According to the Irish Independent, the active pharmaceutical ingredient (API) used in Lilly's type 2 diabetes drug Mounjaro is "Ireland's biggest pharmaceutical export to the U.S." This API is also used in the company's weight-loss drug, Zepbound. The Irish newspaper believes that the ingredient "would be the hardest hit if US president Donald Trump puts tariffs on the [pharmaceutical] sector." The Trump administration hasn't provided any specifics about the threatened tariffs on pharmaceutical imports. However, the outlook for Lilly might not be as bad as initially feared. At a White House meeting with executives from several industries on April 30, President Trump proclaimed he wanted to put up "a tariff wall" for drug imports. But the president said that he planned to "give them a lot of time" to move operations into the U.S. first. Ricks noted in the Q1 earnings call that Lilly already "has a large U.S. manufacturing footprint." He said the company has 10 active projects underway to build and expand facilities. Ricks predicted, "Upon completion of our manufacturing agenda, we'll be able to supply medicines for the U.S. market entirely from U.S. facilities, as well as increase the volume of medicines we export." President Trump also issued an executive order on May 12 to implement "most-favored nation" (MFN) drug pricing. He directed Secretary of Health and Human Services Robert F. Kennedy Jr. to set price targets for drugs based on prices paid by other developed nations. In the executive order, Trump warned, "[S]hould drug manufacturers fail to offer American consumers the most-favored-nation lowest price, my Administration will take additional aggressive action." When asked about the possibility of MFN pricing in Lilly's Q1 call, Ricks responded that it presents "a risk for the industry." However, he argued that "it's a nonsensical idea" to only look at the list prices for drugs in the U.S. compared to those in Europe. Is MFN drug pricing a more worrisome issue for Lilly than tariffs? Maybe, but expect a swift legal challenge that could be successful. In 2021, a federal court blocked a similar executive order signed by President Trump during his first term because it didn't follow required procedures and exceeded the executive branch's authority. Even if the courts don't prevent MFN drug pricing from being implemented, drugmakers could get creative. For example, they could increase the list prices of drugs in other developed countries while giving discounts and rebates that keep the cost paid the same as before. Another option is to negotiate price increases with other countries that help keep U.S. prices at highly profitable levels. It remains to be seen how the tariffs and MFN drug pricing stories will play out. I think, though, that Lilly (and other big pharmaceutical companies) will be able to successfully navigate the murky waters regardless of what happens. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Here's How the Pharmaceutical Import Tariffs Could Affect Eli Lilly was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Novo Nordisk Places Bet on CEO Shake-Up to Reclaim Edge in Weight Loss Drug Race
As its obesity medication Wegovy loses a sizable portion of the market to Eli Lilly and Company (NYSE:LLY)'s competing medicine, Zepbound, the Danish pharmaceutical behemoth Novo Nordisk A/S (NYSE:NVO) abruptly announced the resignation of veteran CEO Lars Fruergaard Jørgensenm last week. The stock has dropped by over 49% in the past year, wiping out over $300 billion, whereas Eli Lilly's stock has shot up by around 800% since Dave Ricks, the company's current CEO, took over in January 2017. An elderly couple receiving insulin from a pharmacist, representing healthcare company's successful pharmaceutical products. After Wegovy's debut, Eli Lilly and Company (NYSE:LLY)'s Zepbound quickly gained popularity, topping Wegovy prescriptions in the United States by March 2024 and gaining an estimated 40% of the market for weight reduction medications by August. According to Bernstein analyst Courtney Breen, Zepbound is preferred by physicians as well as patients since it has been shown in clinical trials to provide higher weight loss than Wegovy. Investors were disappointed when Novo Nordisk A/S (NYSE:NVO)'s next-generation obesity medication, CagriSema, which was supposed to emerge in 2026, failed to achieve the weight loss goals they had hoped for. The firm also has to deal with the Trump administration's proposed tariffs on imported drugs, Medicare drug price debates, growing generic competition, and the upcoming patent expirations for Wegovy. The latest licensing agreements for early-stage candidates like Amycretin and others bought from Septerna and United Laboratories International show the company's transition away from peptide-based medications and toward oral small-molecule obesity therapies. Analysts continue to exercise caution regardless of these attempts. According to Evan Seigerman of BMO Capital Markets, Novo Nordisk A/S (NYSE:NVO)'s future is uncertain in the absence of a significant strategic shift. To regain its leadership in the obesity treatment market, the business's unannounced new CEO will need to speed drug introductions, bridge the gap with Eli Lilly, and negotiate changing regulatory and competitive landscapes. While we acknowledge the potential of NVO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVO and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
LLY Q1 Earnings Call: Revenue Beats Expectations, Profit Guidance Trimmed Amid Price Pressures
Global pharmaceutical company Eli Lilly (NYSE:LLY) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 45.2% year on year to $12.73 billion. The company expects the full year's revenue to be around $59.5 billion, close to analysts' estimates. Its non-GAAP profit of $3.34 per share was 3.4% below analysts' consensus estimates. Is now the time to buy LLY? Find out in our full research report (it's free). Revenue: $12.73 billion vs analyst estimates of $12.62 billion (45.2% year-on-year growth, 0.9% beat) Adjusted EPS: $3.34 vs analyst expectations of $3.46 (3.4% miss) Adjusted EBITDA: $4.25 billion vs analyst estimates of $5.05 billion (33.4% margin, 15.9% miss) The company reconfirmed its revenue guidance for the full year of $59.5 billion at the midpoint Management lowered its full-year Adjusted EPS guidance to $21.53 at the midpoint, a 7.4% decrease Operating Margin: 29%, in line with the same quarter last year Free Cash Flow Margin: 1.2%, similar to the same quarter last year Market Capitalization: $669.8 billion Eli Lilly's first quarter results were driven by significant revenue growth in its key therapeutic areas, notably diabetes and obesity, supported by strong uptake of products such as Mounjaro and Zepbound. Management highlighted the contribution from new launches, expanded reimbursement for immunology products, and the advancement of late-stage pipeline assets. CEO Dave Ricks emphasized the successful Phase 3 data for orforglipron, positioning it as an oral alternative to injectable GLP-1 therapies for chronic diseases. Looking forward, Lilly reconfirmed its annual revenue outlook but lowered its non-GAAP earnings forecast due to ongoing investments and anticipated pricing headwinds. CFO Lucas Montarce noted that mid- to high-single-digit price erosion is expected to persist, while management stressed ongoing uncertainties related to trade policy and reimbursement dynamics. The company is focused on executing its manufacturing expansion and pipeline milestones, with the upcoming orforglipron obesity trial results cited as a key event. Lilly's management attributed the quarter's revenue growth to robust demand for diabetes and obesity therapies, new product launches, and progress in expanding global access. At the same time, profit margins were affected by increased R&D and marketing investments, as well as acquired in-process R&D charges. GLP-1 Portfolio Expansion: Uptake of Mounjaro in diabetes and Zepbound in obesity was a major growth driver, with both products gaining market share in the U.S. and international markets. Zepbound also launched higher-dose vials, aimed at improving patient access through self-pay channels. Immunology and Neuroscience Progress: Ebglyss in atopic dermatitis showed improving patient starts and coverage, with further reimbursement gains anticipated. Kisunla, for Alzheimer's disease, is approved in 12 countries, with increasing adoption but expectations for a gradual build in the market. Manufacturing Investment: The company announced plans to more than double U.S. manufacturing investments, totaling over $50 billion since 2020, including four new facilities to support future supply needs and reduce reliance on imports. Pipeline Advancements: Orforglipron's positive Phase 3 results in diabetes support its potential as an oral GLP-1 therapy, with further obesity data expected soon. Additional late-stage programs in oncology and cardiometabolic health also advanced. Tariff and Pricing Pressures: Management addressed recent U.S. trade policies and pharmacy benefit manager (PBM) decisions, noting that announced tariffs are not expected to materially affect 2025 results, but ongoing pricing and reimbursement negotiations remain a key focus. Management's outlook for the rest of the year centers on maintaining revenue momentum through new product launches and expanded access, while navigating pricing pressures and external policy risks. Pricing and Reimbursement Dynamics: Persistent mid- to high-single-digit price erosion in the U.S. and Europe, influenced by PBM formulary changes and competitive discounting, is expected to weigh on profits. Pipeline and Launch Execution: Upcoming data readouts for orforglipron in obesity, as well as continued launches in international markets for Mounjaro and Zepbound, are seen as crucial for sustaining growth. Manufacturing and Supply Expansion: The scaling of U.S. manufacturing capacity is intended to support both domestic supply and export growth, potentially mitigating risks from future trade or tariff actions. Asad Haider (Goldman Sachs): Asked about the impact of the CVS formulary decision favoring a competitor over Zepbound. CEO Dave Ricks explained that while such PBM moves are expected, Lilly aims to expand access and avoid limiting patient and physician choice. Geoff Meacham (Citibank): Inquired about the breadth of indications for orforglipron and whether its oral format could expand usage beyond current injectable therapies. Dr. Dan Skovronsky indicated confidence in pursuing broader indications, including combinations for immunology and neuroscience. Chris Schott (JPMorgan): Sought clarification on orforglipron's potential role relative to injectables in diabetes and obesity. Management highlighted that a substantial share of patients prefer oral therapies, supporting significant global opportunity. Tim Anderson (Bank of America): Questioned the prevalence of exclusive PBM arrangements in obesity drug coverage. Lilly replied that such 'one of one' formulary strategies are rare but acknowledged ongoing negotiations and market evolution. Evan Seigerman (BMO Capital Markets): Asked about the withdrawal of the heart failure indication for Tirzepatide. Dr. Skovronsky said additional trials are required by the FDA, but noted that patients in the study are already eligible under existing obesity indications. In the coming quarters, the StockStory team will be monitoring (1) the readout of orforglipron obesity trials and subsequent regulatory submissions, (2) progress in expanding U.S. and international reimbursement for key products like Zepbound and Ebglyss, and (3) the pace of manufacturing expansion and its impact on supply reliability. We will also track further data from late-stage pipeline assets and any shifts in PBM or trade policy that could influence pricing or access. Eli Lilly currently trades at a forward P/E ratio of 28.2×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
