Eli Lilly and Company announced its financial results for the third quarter of 2022.
Article continues below
In Q3 2022, worldwide revenue was $6.94 billion, an increase of 2% compared with Q3 2021, driven by a 14% increase in volume, partially offset by a 7% decrease due to lower realized prices and a 4% decrease from the unfavorable impact of foreign exchange rates.
Key growth products, consisting of Verzenio, Trulicity, Mounjaro, Jardiance, Taltz, Emgality, Retevmo, Cyramza, Tyvyt and Olumiant, grew 19% and represented 70% of revenue for Q3 2022, excluding revenue from COVID-19 antibodies. Excluding revenue from Alimta, which lost exclusivity in major markets, COVID-19 antibodies, and Olumiant for the treatment of COVID-19, worldwide revenue increased 9% in Q3 2022.
Revenue in the U.S. increased 11% to $4.42 billion, driven by a 15% increase in volume, partially offset by a 4% decrease due to lower realized prices.
Excluding revenue from Alimta, COVID-19 antibodies, and Olumiant for the treatment of COVID-19, revenue in the U.S. increased by 20%, primarily driven by volume from key growth products.
The lower realized prices in the U.S. were primarily driven by Humalog, due to unfavorable segment mix and list price reduction of Insulin Lispro injection.
Revenue outside the U.S. decreased 9% to $2.52 billion, driven by a 12% decrease due to lower realized prices and an 11% decrease from the unfavorable impact of foreign exchange rates, partially offset by a 13% increase in volume.
The lower realized prices were primarily driven by the impact of government pricing in China from the National Reimbursement Drug List (NRDL) formulary for certain products, particularly Tyvyt and Verzenio, and volume-based procurement (VBP) for Humalog.
The increase in volume outside the U.S. was largely driven by key growth products and the NRDL formulary in China, partially offset by decreased volume for Alimta and Cymbalta resulting from generic competition.
Additionally in Q3 2022, the company recognized $86.0 million in Mounjaro revenue related to a sales collaboration agreement with Mitsubishi Tanabe Pharma for the right to sell and distribute Mounjaro in Japan.
Excluding revenue from Alimta, COVID-19 antibodies, and Olumiant for the treatment of COVID-19, revenue outside the U.S. decreased by 5%, or an increase of 6% on a constant currency basis.
Gross margin was relatively flat at $5.36 billion in Q3 2022 compared with Q3 2021. Gross margin as a percent of revenue was 77.3%, a decrease of 1.6 percentage points compared with Q3 2021. Gross margin in Q3 2021 included a benefit from the partial reversal of a previous inventory charge related to COVID-19 antibodies.
Additionally, in 2022, lower realized prices and increased expenses due to inflation and logistics costs were offset by favorable product mix, including the impact of lower sales of Olumiant for the treatment of COVID-19, and the favorable impact of foreign exchange rates. ■