Eli Lilly and Company
Eli Lilly and Company discovers, develops, manufactures, and markets human pharmaceutical products, with a portfolio anchored by diabetes, obesity, oncology, immunology, and neuroscience medicines. The company sells medicines in about 90 countries and combines traditional physician-directed promotion with direct-to-patient channels such as LillyDirect in certain markets.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueIncretin-based therapies and related products used to treat type 2 diabetes and obesity.
Cancer therapies, including branded treatments used in breast and other cancers.
Specialty medicines for immune and central nervous system conditions.
Legacy and smaller products across additional therapeutic areas and geographies.
LillyDirect and related patient access, adherence, and care-navigation services.
Products
Reported · share of revenue- Products93.5 %
- Collaborationand Other Revenue6.5 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Lilly sells primarily to wholesalers, pharmacy benefit managers, insurers, plan sponsors, hospitals, government and long-term care institutions, and retail pharmacies, which then distribute medicines to patients. It also promotes directly to healthcare providers and, in the U.S., directly to consumers for selected products, reflecting a hybrid B2B and patient-access model. Demand is driven by chronic disease treatment, specialty prescribing, and payer coverage decisions.
Large U.S. distributors purchase Lilly products for broad downstream supply to pharmacies, physicians, and hospitals.
PBMs, insurers, plan sponsors, and managed care groups buy through rebates and formulary access decisions that determine utilization.
Physicians, hospitals, and clinics prescribe and administer specialty medicines such as oncology and diabetes therapies.
Pharmacies dispense branded medicines to patients and are important for chronic therapy fulfillment.
Government agencies, long-term care institutions, and group purchasing organizations buy for covered populations and formularies.
Patients access select medicines directly through LillyDirect and related support tools to improve adherence and convenience.
Strategy
Lilly is prioritizing innovation-led growth through internal R&D, business development, and commercialization of differentiated medicines in large chronic disease markets. It is also expanding manufacturing capacity and digital access channels to meet demand and improve patient access, while using partnerships and licensing to broaden its pipeline and reach. These priorities support scale, supply reliability, and faster global rollout of new products.
Demand for key medicines is rising faster than legacy supply networks, so capacity is central to growth and launch execution.
Direct-to-patient and digital tools can improve access, adherence, and brand reach while reducing friction in therapy initiation.
Long-term growth depends on replacing products that face competition or lose intellectual property protection.
New markets diversify revenue and extend the lifecycle of major products beyond the U.S.
Geography
Lilly manufactures and distributes products in the United States, including Puerto Rico, as well as in Europe and Asia, and sells in approximately 90 countries. The U.S. remains the most important market, but international growth is meaningful, especially as new launches expand outside the U.S. Geography matters because pricing, reimbursement, regulation, and supply-chain execution differ materially by market.
Risks
The main risk is pipeline and commercialization execution: Lilly must keep launching successful products fast enough to offset competition, patent loss, and changing treatment dynamics. It also faces manufacturing, quality, supply-chain, cyber, and regulatory risks because its products are complex to produce and distributed through a broad global network. Pricing pressure, rebates, and payer access decisions can materially affect realized revenue even when prescription demand is strong.
- Pricing and reimbursement pressureImpact: HighLikelihood: High
Wholesalers, PBMs, insurers, and governments negotiate discounts and rebates that affect net sales.
Exposure: U.S. and international access channels
- Pipeline failure or weak commercializationImpact: HighLikelihood: Medium
The company depends on new medicines and indications to replace revenue lost to competition and patent expiry.
Exposure: Core to long-term growth and valuation
- Manufacturing and supply-chain disruptionImpact: HighLikelihood: Medium
Complex biologic and specialty products require reliable production, third-party suppliers, and logistics.
Exposure - Cybersecurity and IT failureImpact: HighLikelihood: Medium
LillyDirect, patient data, and global operations depend on secure systems and third-party service providers.
Exposure - International competition and geopolitical exposureImpact: MediumLikelihood: Medium
The company competes globally and relies on cross-border manufacturing, approvals, and market access.
Exposure: China and other fast-growing pharma markets
Accounting
Judgemental itemsNet sales are reduced by rebates, discounts, chargebacks, and returns, which require judgment and can move with payer mix.
Impact: Affects reported revenue and gross margin
Partnered products and licensing deals can shift revenue recognition and expense timing.
Impact: Affects top-line mix and operating income
Development milestones and royalties are contingent and can be material when multiple products advance together.
Impact: Affects operating expenses and cash flow
Large facility investments increase depreciation and require assumptions about utilization and useful lives.
Impact: Affects future margins and asset values
Product performance, competition, or regulatory setbacks can trigger impairment testing.
Impact: Could create non-cash charges if forecasts weaken
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Last updated: 24/09/2026