What it does
The company states that it discovers, develops, manufactures and markets human pharmaceutical products in a single business segment. Its marketed medicines span cardiometabolic health, oncology, immunology and neuroscience. The filing lists medicines for diabetes, obesity or overweight, cancer, inflammatory diseases, migraine and early symptomatic Alzheimer’s disease, among other indicated uses. Certain products are marketed through arrangements with other pharmaceutical companies, including collaborations identified in the product list.
Source: Eli Lilly and Company Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company makes sales from its pharmaceutical products worldwide. It sells products through wholesalers in the U.S. and promotes products through its own sales organizations in many countries, as well as through third parties in some markets. Its account managers serve wholesalers, pharmacy benefit managers, insurers, plan sponsors, employers, managed care organizations, group purchasing organizations, government and long-term care institutions, hospitals and certain retail pharmacies. The filing states that arrangements with these organizations often include product discounts or rebates. The segment revenue table below provides the financial breakdown.
Source: Eli Lilly and Company Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The company states that its products are sold in approximately 90 countries and manufactured and distributed through facilities in the U.S., including Puerto Rico, Europe and Asia. In the U.S., wholesalers distribute most products to pharmacies, physicians and other healthcare professionals, and hospitals. The filing identifies McKesson Corporation, Cencora, Inc. and Cardinal Health, Inc. as three wholesale distributors that each represented a significant percentage of consolidated revenue in 2025, 2024 and 2023; it says no other customer exceeded 10 percent of consolidated revenue in those years. Marketing and distribution vary by country and applicable regulation.
Source: Eli Lilly and Company Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The company states that its products compete globally in highly competitive pharmaceutical markets. It identifies product effectiveness, safety, availability, ease of use, patient preference, formulary placement, price, payer coverage, reimbursement and regulatory approvals as important competitive factors. The filing says competition includes branded, biosimilar and generic products, as well as new products, delivery systems, modalities, indications and uses. It does not name individual competing pharmaceutical companies in its competition discussion. The filing also states that barriers to reimbursable access for anti-obesity medicines can affect sales volumes, business and operating results.
Source: Eli Lilly and Company Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
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Pharmaceutical research and development is costly and uncertain, and the company may not develop, license or acquire enough commercially successful products to replace revenue from products that lose protection or face displacement.
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Intense global competition, including branded, generic and biosimilar alternatives, may affect product revenue, access and pricing.
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Government price controls and public and private restrictions on pricing, reimbursement and patient access could adversely affect operations, reputation or business.
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New safety or efficacy concerns may lead to labeling changes, reduced acceptance, recalls, withdrawals or product-liability claims.
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Revenue concentration in relatively few products and reliance on consolidated supply-chain entities expose the company to product, channel and access disruptions.
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Loss, invalidation, circumvention or weakening of intellectual-property protection can lead to generic or biosimilar competition and rapid revenue declines.
Source: Eli Lilly and Company Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
The company had 50,000 employees in FY2025. It states that it manufactures and distributes products through facilities in the U.S., including Puerto Rico, Europe and Asia. The filing also describes reliance on third parties for certain product manufacturing, devices and components, and says that their regulatory noncompliance can affect product supply or approvals. The company states that it makes substantial capital and operating investments in quality systems and controls for manufacturing, product development and process-development operations. The supplied filing excerpts do not state seasonality information.
Source: Eli Lilly and Company Form 10-K for fiscal 2025, Item 1 — sec.gov