Lilly faces significant risks from pharmaceutical pricing pressures, reimbursement changes (e.g., Inflation Reduction Act), intense competition, patent expirations, manufacturing disruptions, macroeconomic fluctuations, foreign currency exchange rate volatility, and ongoing litigation (product liability, patent, pricing, 340B). Potential for large, uncertain losses from ongoing litigation and regulatory scrutiny is a major concern. Contract manufacturing and supply agreements pose a risk of substantial future payments.
Financial Upside
Lilly's revenue increased in Q3 2024, primarily driven by Mounjaro, Zepbound, and Verzenio sales. Strong demand for Mounjaro, along with increased supply and favorable pricing, contributed to the revenue growth. New product approvals and ongoing clinical trials for various compounds (e.g., Tirzepatide, Donanemab) offer potential future revenue streams. Debt issuances and unused credit facilities provide financial flexibility.
