Soaring sales of Mounjaro significantly boost Lilly's UK revenue nearly twice over
In the dynamic world of pharmaceuticals, Eli Lilly and Company Limited continues to make strides in the United Kingdom. The company, led by Chair, President, and CEO David A. Ricks, has reported significant growth in its core commercial operations, as well as in research and development and regional services to other group companies.
According to the latest financial filings, Eli Lilly's pre-tax profit surged from £32.2m to £51.7m over the same period. This growth was further bolstered by a turnover of £468.7m for the prior 12 months, and an anticipated turnover of £889m for the year 2024 in the UK.
However, the UK pharmaceutical industry has faced challenges this year. Astrazeneca abandoned plans to invest £450m in a vaccine plant in Merseyside, and British drug giant Astrazeneca paused a planned £200m expansion of its research site in Cambridge. US pharmaceutical giant Merck also scrapped its planned £1bn UK expansion, leaving its research site in London King's Cross unoccupied, despite construction set to be completed in 2027.
Despite these industry-wide setbacks, Eli Lilly's UK operations remain strong. The rise in third-party sales of goods was 150% for Eli Lilly's division, and growth in research and development and regional services to other group companies also boosted the company's sales by 5%.
The success of Eli Lilly's flagship product, Wegovy (Ozempic), has been a significant contributing factor to this growth. While Mounjaro has been the UK's most popular weight loss jab, around 625,000 patients are expected to switch to Wegovy due to an average 126% price increase for Mounjaro, and up to 170% for the largest doses. In August 2021, City AM reported that Ozempic sales had risen five-fold due to this price increase.
In light of these industry developments, David Ricks, the CEO of Eli Lilly, has urged the UK to prioritize "flexibility, agility, and business responsiveness" to continue attracting sufficient investment. He also emphasized the need for the UK to develop a different investment proposition to be interesting to multinational corporations, particularly Americans, as regulation and the UK's relatively small market size hold back growth in many developed economies.
In October 2024, Eli Lilly announced a deal with the UK Government, pledging to invest £279m into the country, bringing the expected total Eli Lilly investment into the UK up to £435m. This investment underscores Eli Lilly's commitment to the UK market and its confidence in the country's potential for growth and success.
In conclusion, while the UK pharmaceutical industry faces challenges, Eli Lilly and Company Limited continues to thrive. The company's strong core operations, successful products, and strategic investments demonstrate its resilience and commitment to the UK market. With the right investment proposition and policies, the UK has the potential to continue attracting and nurturing successful multinational corporations like Eli Lilly.
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