Eli Lilly and Company (NYSE: LLY) released its third-quarter financial results for 2025 during a recent earnings call, outlining strong revenue growth, clinical progress, and strategic operational investments. The company saw a substantial 54% increase in revenue year over year for the quarter, underpinned by the robust performance of its key pharmaceutical products both domestically and internationally.
Leadership convened for the call included CEO Dave Ricks, CFO Lucas Lilly, Chief Scientific Officer Dr. Dan Skovronsky, and key division presidents covering immunology, neuroscience, oncology, cardiometabolic health, as well as investor relations representatives. The team provided detailed insights into financial metrics, clinical trial milestones, manufacturing expansions, and strategic outlook.
Financial Performance and Guidance
Revenue surged significantly due to strong demand for Eli Lilly's flagship medicines. In the U.S., the company maintained its leadership position in the incretin analogs market, capturing nearly 60% of prescriptions within this class for the fifth consecutive quarter. Internationally, uptake of Mounjaro accelerated, with widespread adoption in numerous countries.
The gross margin reached 83.6%, a 1.4-percentage-point improvement from the prior year, reflecting a favorable product mix that offset pressures from lower realized prices. While research and development expenses increased by 27% as the company advanced its robust drug development programs, marketing and administrative costs rose by 31% to support multiple product launches globally. The non-GAAP performance margin rose over 8 percentage points to 48.3%, mainly driven by revenue growth.
Pipeline Advances and Regulatory Milestones
Eli Lilly announced several notable pipeline achievements including:
- U.S. FDA approval of Imlunestrant (Orserdu) for HR-positive, HER2-negative ESR1-mutated advanced or metastatic breast cancer.
- European approval of Donanemab for early symptomatic Alzheimer's disease.
- Positive Phase 3 survival data for Jaypirca in Naive Positive patients and Verzenio in high-risk early breast cancer.
- Successful Phase 3 trial outcomes for Orforglipron in obesity and type 2 diabetes, with one trial demonstrating superiority to oral semaglutide.
The clinical data for Orforglipron supports global regulatory submissions scheduled to begin later this year, emphasizing its potential as an effective oral treatment option in cardiometabolic health.
Manufacturing Expansion
The company is scaling its manufacturing footprint with planned construction of two new U.S. facilities dedicated to active pharmaceutical ingredients and bioconjugate/antibody portfolios in Virginia and Texas, alongside an expansion of an existing Puerto Rico facility. These facilities are intended to meet growing demand for products including Orforglipron.
Commercial Strategies and Market Dynamics
Eli Lilly executives discussed the commercial outlook for Orforglipron, highlighting a dual approach involving broad payer coverage and consumer-focused direct channels to increase patient access. The company expects this strategy to facilitate rapid entry into both U.S. and international markets, capitalizing on differing healthcare dynamics and pricing sensitivities.
Regarding the incretin space, the company noted distinctions between single-acting GLP1 therapies and multi-acting agents such as Tirzepatide, with each serving specific patient segments and contributing to market growth. Market share gains and payer strategies were also examined in the context of evolving pharmaceutical rebates and transparency initiatives, including recent industry moves by payers like Cigna.
Alzheimer's Disease and Neuroscience Initiatives
Eli Lilly is advancing clinical programs targeting Alzheimer’s disease, including ongoing enrollment completion in the event-driven Trailblazer 3 trial. The company emphasized its confidence in the potential of preclinical treatments and expressed commitment to innovation in early intervention approaches, including subcutaneous dosing and fixed-duration therapies. Awareness and diagnostic advancements, including blood tests, were noted as essential for upcoming trial readouts and market readiness.
Questions from Analysts
Participants in the Q&A session probed topics such as Orforglipron's path to market, manufacturing and launch timelines, pricing strategies amid reimbursement reforms, international uptake of Mounjaro, competitive dynamics within obesity and diabetes markets, as well as the impact of Medicare Part D negotiations on pricing.
Company representatives reiterated their focus on speed to market, comprehensive access strategies, and leveraging robust clinical data to support product differentiation. They highlighted the importance of innovation paired with disciplined execution in manufacturing scale-up and commercialization.
Looking Ahead
Eli Lilly remains confident in sustaining its leadership through continuous investment in research and development, commercial outreach, and manufacturing capacity expansion. The company envisions expanding the application of its core medicines to larger populations, driving impact across chronic disease treatment landscapes such as obesity, diabetes, and neurodegenerative disorders.
With multiple upcoming clinical trial readouts, product approvals, and commercial launches expected, Eli Lilly’s strategic initiatives position it to capitalize on significant market opportunities while managing evolving competitive and pricing environments.