How Does Eli Lilly Make its Money?
Eli Lilly is a global pharmaceutical company that discovers, develops, manufactures, and sells prescription drugs. The company has become the world’s most valuable pharma company thanks to its blockbuster GLP-1 drugs: Mounjaro (tirzepatide for Type 2 diabetes) and Zepbound (tirzepatide for obesity/weight loss). These two drugs have made Eli Lilly the center of the weight-loss drug revolution alongside Novo Nordisk (Ozempic/Wegovy).
Eli Lilly (LLY) Business Model
Eli Lilly operates in the pharmaceuticals sector. Below is a summary of Eli Lilly’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Eli Lilly’s 2024 fiscal year filings with the SEC.
Eli Lilly Competitors
Eli Lilly’s key competitors and comparable public companies in the pharmaceuticals sector include Moderna and UnitedHealth Group. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Eli Lilly stacks up by comparing their revenue breakdown, margins, and growth metrics.
Eli Lilly Competitors
Eli Lilly’s key competitors and comparable public companies in the pharmaceuticals sector include Moderna and UnitedHealth Group. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Eli Lilly stacks up by comparing their revenue breakdown, margins, and growth metrics.
Eli Lilly Competitors
Eli Lilly’s key competitors and comparable public companies in the pharmaceuticals sector include Moderna and UnitedHealth Group. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Eli Lilly stacks up by comparing their revenue breakdown, margins, and growth metrics.
Eli Lilly Competitors
Eli Lilly’s key competitors and comparable public companies in the pharmaceuticals sector include Moderna and UnitedHealth Group. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Eli Lilly stacks up by comparing their revenue breakdown, margins, and growth metrics.
Eli Lilly Competitors
Eli Lilly’s key competitors and comparable public companies in the pharmaceuticals sector include Moderna and UnitedHealth Group. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Eli Lilly stacks up by comparing their revenue breakdown, margins, and growth metrics.
Eli Lilly Competitors
Eli Lilly’s key competitors and comparable public companies in the pharmaceuticals sector include Moderna and UnitedHealth Group. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Eli Lilly stacks up by comparing their revenue breakdown, margins, and growth metrics.
Eli Lilly Competitors
Eli Lilly’s key competitors and comparable public companies in the pharmaceuticals sector include Moderna and UnitedHealth Group. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Eli Lilly stacks up by comparing their revenue breakdown, margins, and growth metrics.
Eli Lilly Competitors
Eli Lilly’s key competitors and comparable public companies in the pharmaceuticals sector include Moderna and UnitedHealth Group. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Eli Lilly stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Product/Category | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Mounjaro (diabetes) | $11.6B | $5.2B | +123.1% |
| Zepbound (obesity) | $4.9B | $0.2B | +2,350% |
| Verzenio (breast cancer) | $4.4B | $3.5B | +25.7% |
| Humalog/Humulin (insulin) | $2.3B | $2.5B | -8.0% |
| Taltz (psoriasis/PsA) | $2.9B | $2.8B | +3.6% |
| Jardiance (diabetes) | $2.8B | $2.7B | +3.7% |
| Olumiant (rheumatoid arthritis) | $0.9B | $1.0B | -10.0% |
| Other Products | $5.4B | $5.1B | +5.9% |
| Total Revenue | $45.0B | $34.1B | +32.0% |
Mounjaro + Zepbound — 37% of Revenue
The twin blockbusters. Both contain tirzepatide, a dual GIP/GLP-1 receptor agonist:
- Mounjaro: FDA-approved for Type 2 diabetes. $11.6B in its second full year — one of the fastest ramp-ups in pharma history.
- Zepbound: FDA-approved for obesity (November 2023). Already at $4.9B in its first full year. Demand consistently exceeds supply.
Combined, tirzepatide generated $16.5B in 2024 and is projected to reach $25B+ by 2026.
Oncology — Verzenio
Verzenio (abemaciclib) for breast cancer grew 26% to $4.4B, making it the #1 CDK4/6 inhibitor globally. Supported by expanded indications including adjuvant (early-stage) breast cancer.
Diabetes Legacy
Humalog and Humulin (insulin) are declining as Lilly cut insulin prices 70% in 2023 to address affordability concerns. Jardiance (licensed from Boehringer Ingelheim) remains steady.
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $45.0B | $34.1B |
| Cost of Revenue | $11.7B | $10.3B |
| R&D Expense | $11.5B | $9.3B |
| Operating Income | $12.9B | $6.5B |
| Net Income | $10.6B | $5.2B |
Key Financial Metrics
- Gross Margin: 74.0% — Premium pharma margins. Biologics like Mounjaro have high manufacturing costs relative to small molecules but still generate exceptional margins.
- R&D Spending: $11.5B (25.6% of revenue) — Massive investment pipeline spanning Alzheimer’s (donanemab), obesity combinations, and oncology.
- Operating Margin: 28.7% — Expanding rapidly as Mounjaro/Zepbound scale. Fixed R&D and manufacturing costs divide across a much larger revenue base.
- Revenue Growth: +32% — Exceptional growth for a large-cap pharma company, entirely driven by the GLP-1 franchise.
Is Eli Lilly Profitable?
Yes, Eli Lilly is profitable. The company reported net income of $10.6B on total revenue of $45.0B. With an operating margin of 28.7%, Eli Lilly demonstrates solid profitability for the pharmaceuticals sector. The gross margin of 74.0% reflects Eli Lilly’s pricing power and cost structure.
What to Watch
- Mounjaro/Zepbound supply — Demand vastly exceeds supply. Eli Lilly is investing $18B+ in manufacturing capacity. Resolving supply constraints is the #1 near-term catalyst.
- Obesity market expansion — The global obesity drug market could reach $100B+ by 2030. Zepbound competes with Novo Nordisk’s Wegovy and next-gen oral GLP-1 drugs in development.
- Tirzepatide in additional indications — Trials underway for heart failure, sleep apnea, NASH/MASH (fatty liver), and kidney disease. Each new indication expands the addressable market.
- Donanemab (Alzheimer’s) — FDA approved (brand: Kisunla). The Alzheimer’s disease market could be worth $10B+ but adoption has been slow due to monitoring requirements and modest efficacy.
- Patent cliff management — Mounjaro’s patents extend into the 2030s, providing a long runway. But pharma companies always face patent cliff risk on their blockbusters.
Eli Lilly (LLY) Financial Summary
Eli Lilly (LLY) is a pharmaceuticals company that generated $45.0B in total revenue in fiscal year 2024. Revenue grew +32% year-over-year. The company earned $10.6B in net income, making it profitable. For a deeper look at Eli Lilly’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.