Zepbound, launched in November 2023, generated $4.93B in revenue in 2024, demonstrating successful market penetration and significant contribution to overall revenue growth. This highlights the company's ability to successfully launch new products and capture market share.

Capital expenditures reached $5.06B in 2024, up from $3.45B in 2023, with investments in global facilities to manufacture existing and future products. This indicates a commitment to scaling up production capacity to meet anticipated demand and support future growth initiatives.

The acquisition of Morphic Holding, Inc. for $3.35B in 2024, primarily for acquired IPR&D, indicates a strategic focus on expanding the immunology pipeline. This move positions the company to develop new treatments in this therapeutic area.

The company has demonstrated successful execution in key therapeutic areas, with Mounjaro, Verzenio, and Trulicity accounting for 75% of total revenues in 2024. This concentration highlights effective management of these key products.

The report indicates that demand for incretin medicines exceeded production at times during 2024, but that tirzepatide supply currently exceeds demand in the U.S. This suggests active management of the supply chain to address fluctuating demand.

Gross margin as a percent of revenue increased 2.1 percentage points compared with 2023, primarily driven by favorable product mix and higher realized prices. This indicates effective cost management and pricing strategies.

The report highlights that the company depends on products with intellectual property protection and that loss of effective protection can result in rapid revenue declines. It also notes increasing patent challenges from generic manufacturers, signaling continued risk in this area.

The report discusses increasing government price controls and other public and private restrictions on pricing, reimbursement, and access for drugs. This indicates ongoing regulatory and market access risks that could impact revenue and profitability.

The report emphasizes the company's reliance on third parties for manufacturing, clinical trials, and other services, noting that failures by these parties could adversely affect the business. This highlights the operational risks associated with outsourcing.

The 10-K filing explicitly states that the company and its products face intense competition from multinational pharmaceutical companies, biotechnology companies, and lower-cost generic and biosimilar manufacturers. This competitive landscape is a key factor influencing market share and pricing.

The document recognizes the increasing role of biosimilars and how health authority guidelines and legislative actions could make it less burdensome for competitor products to enter the market and further incentivize uptake of biosimilars. This is a major competitive threat to Lilly's biologic products.

The increase in the production, marketing, and sale of counterfeit, misbranded, adulterated, and compounded incretins is a major competitive concern, as these practices may impact patient safety, undermine regulatory drug approval processes, and present market risks.

The company is expanding its manufacturing capacity to meet the demand for its current and prospective products. This expansion includes sites in North Carolina, Wisconsin, Ireland, Germany, and two in Indiana.

The company manages its supply chain to meet product demand while reallocating manufacturing capacity to improve efficiency and respond to changes in supply and demand. This includes using comprehensive quality systems, inventory management, and back-up sites.

The company depends on China-based suppliers for portions of its supply chain. Geopolitical tensions between the U.S. and China could disrupt operations and significantly impact the business and results of operations.

The company invests heavily in research and development because it believes it is critical to its long-term competitiveness. At the end of 2024, the company employed approximately 11,000 people in pharmaceutical research and development activities.

The company's internal pharmaceutical research focuses primarily on the areas of immunology, metabolism (including diabetes, obesity and cardiovascular), neuroscience, and oncology. This targeted approach allows the company to concentrate its resources in areas with high potential for innovation.

The company deploys AI and other emerging technologies in various facets of its operations and continues to explore further use cases for AI. The rapid advancement of these technologies presents opportunities for the company in research, manufacturing, commercialization, and other business endeavors.

The board authorized a $15.00 billion share repurchase program in December 2024. This action reflects management's confidence in the company's financial position and future prospects.

The quarterly dividend was increased to $1.50 per share effective for the dividend to be paid in the first quarter of 2025, resulting in an indicated annual rate for 2025 of $6.00 per share. This indicates a commitment to returning value to shareholders.

Capital expenditures were $5.06 billion during 2024, compared to $3.45 billion in 2023. The company is making investments in global facilities to manufacture existing and future products. These investments support operations, have increased capital expenditures and will result in meaningfully higher capital expenditures over the next several years.

The company is committed to creating a safe, supportive, ethical, and rewarding work environment through intentional focus on its human capital management process, fairness and nondiscrimination in its employment practices, robust training and development opportunities, and competitive pay and benefits.

The company strives to foster a healthy, vibrant work environment, which includes keeping its employees safe. It seeks to create a companywide culture where best-in-class safety practices are consistently followed.

There is increased attention from the media, stockholders, activists, political leadership, regulatory authorities, and other stakeholders on climate, social, and other sustainability matters. The perception that the company or others in its industry or supply chain have failed to act in an appropriate manner, whether or not valid, results in publicity that can negatively affect its business, brand, and reputation.

Uneven economic growth or downturns or international trade and other global disruptions, geopolitical tensions, or disputes could adversely affect the company's business and operating results.

Changes in foreign currency rates, interest rate risks, and inflation or deflation affect the company's results of operations. As a global company, the company faces foreign currency risk exposure from fluctuating currency exchange rates, primarily the U.S. dollar against the euro, Japanese yen, and Chinese yuan.

There continues to be considerable public and government scrutiny of pharmaceutical pricing. In addition, U.S. government actions to reduce federal spending on entitlement programs, including Medicare and Medicaid, affects payment for our products or services associated with the provision of our products.