INDIANAPOLIS - Eli Lilly and Company (NYSE: NYSE:LLY), with its impressive market capitalization of $722 billion, today announced a new share repurchase program valued at $15 billion, following the completion of its previous $5 billion buyback in the fourth quarter of 2024. In a demonstration of its continued financial growth, the pharmaceutical giant also declared a 15% increase in its quarterly dividend for the seventh year running, setting the upcoming dividend at $1.50 per share, payable on March 10, 2025. According to InvestingPro data, Eli Lilly has maintained dividend payments for 54 consecutive years, showcasing its commitment to shareholder returns.
The company's executive vice president and chief financial officer, Lucas Montarce, affirmed that while Eli Lilly is focusing on supporting new launches, expanding manufacturing capacity, and advancing its pipeline, it also aims to return increased capital to shareholders over the next three years, reflecting the company's robust growth profile. This strategy appears well-supported by the company's strong financial performance, with revenue growth of 27.4% and an impressive gross profit margin of 80.9%. InvestingPro subscribers can access detailed analysis and 16 additional key insights about Eli Lilly's financial health and growth prospects.
The newly approved repurchase program does not have a set expiration date and may be adjusted or halted at any time. The repurchases can be conducted through various methods, including open market transactions, accelerated share repurchases, or privately negotiated deals, at management's discretion.
Eli Lilly, known for its contributions to medical science and the pharmaceutical industry for nearly 150 years, continues to address significant health challenges such as diabetes care, obesity, Alzheimer's disease, immune system disorders, and cancer treatments. The company emphasizes the importance of innovative clinical trials and strives to ensure that its medicines are accessible and affordable.
The press release also included a cautionary statement highlighting the inherent risks and uncertainties in pharmaceutical research and development, business activities, and capital allocation. Despite the forward-looking nature of the statements regarding dividend payments and potential share repurchases, actual results may vary due to various factors.
This financial news is based on a press release statement from Eli Lilly and Company.
In other recent news, Eli Lilly has experienced a significant 42% increase in third-quarter revenue, primarily driven by its diabetes and cancer drugs, Mounjaro and Zepbound, which surpassed $3 billion. The company's earnings per share also rose to $1.18 from $0.10 in the same quarter the previous year. However, Erste Group has downgraded Eli Lilly's stock rating from Buy to Hold due to concerns about the company's inventory and receivables ratios in relation to its sales.
Investors should also note that Eli Lilly announced a substantial $3 billion investment to expand its recently acquired manufacturing facility in Wisconsin. This expansion aims to increase production capacities for its in-demand weight-loss drug, Zepbound, as well as diabetes treatments and other medications.
On the other hand, Novo Nordisk (NYSE:NVO)'s weight loss drug Wegovy has shown flat sales growth in the third quarter due to supply issues. Despite this, Bernstein research suggests that domestic pharmaceutical companies, such as Innovent, could increase their market share in the Chinese market for GLP-1 drugs used in treating obesity.
These are recent developments that provide a snapshot of the current state of affairs for both Eli Lilly and Novo Nordisk.
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