Lilly vs Johnson & Johnson

10-Q Financial Filing Analysis for Lilly (2026-10-29)

Eli Lilly and Company reported strong financial results for the third quarter of 2026, driven by rapid uptake of its incretin portfolio. Total revenue reached $24.40 billion, up 39% year-over-year from $17.60 billion in Q3 2025, underpinned by massive volume expansion for Mounjaro ($10.72 billion, up 65%) and Zepbound ($5.35 billion, up 49%). Incretin medicines represented roughly two-thirds of total revenue for the first nine months of 2026. Consolidated net income for the quarter rose 16% to $6.45 billion ($7.22 diluted EPS), despite absorbing $4.18 billion in acquired in-process research and development (IPR&D) charges from external business development transactions including AtaiBeckley and Curevo. Operating cash flow expanded to $27.42 billion for the first nine months, allowing Lilly to fund aggressive manufacturing expansions ($8.44 billion in CapEx), strategic acquisitions ($10.69 billion net cash paid for acquisitions), and shareholder returns ($4.64 billion in dividends and $4.33 billion in share repurchases). While lower realized prices in the U.S. and China created pricing headwinds, Lilly's manufacturing efficiencies supported an 83.9% gross margin. Management continues to monitor pricing pressures from the Inflation Reduction Act, international reference pricing, and ongoing litigation regarding incretin compounding and patent enforcement.

• Q3 2026 revenue increased 39% year-over-year to $24.40 billion, with Mounjaro generating $10.72 billion and Zepbound generating $5.35 billion.
• Quarterly net income reached $6.45 billion ($7.22 diluted EPS), absorbing $4.18 billion in acquired in-process R&D charges primarily from asset acquisitions of AtaiBeckley and Curevo.
• For the first nine months of 2026, operating cash flow stood at $27.42 billion, funding $8.44 billion in capital expenditures, $18.2 billion in business development activity, and $4.33 billion in share buybacks.

West Pharma earnings prove it's not just a GLP-1 play

West Pharmaceutical Services reported strong Q3 2026 earnings, with adjusted EPS up 35.7% to $2.66 on sales of $874.5 million, beating analyst expectations. The company raised its full-year adjusted EPS guidance to $9.38-$9.48, citing robust demand for its premium drug-delivery components. While the GLP-1 boom, highlighted by Eli Lilly's 39% revenue growth, is a tailwind, West's growth is also driven by high-value component sales and margin expansion. Proprietary product sales grew 12.6%, with high-value components up 20.3% and now representing 53% of sales. Management expects operating margins to expand by nearly 300 basis points this year, supported by disciplined capital spending. The stock hit a 52-week high of $438.27, reflecting investor confidence in the company's diversified growth strategy.

• West Pharmaceutical Services reported Q3 2026 adjusted EPS of $2.66, up 35.7% year-over-year.
• Q3 sales rose 8.7% to $874.5 million.
• Full-year adjusted EPS guidance raised to $9.38-$9.48 from previous $8.85-$9.05.

Eli Lilly Debuts GLP-1 Ad Targeting Medicare Enrollees

Eli Lilly and Wieden+Kennedy Portland premiered a film called “A Life Covered” to raise awareness among Medicare Part D enrollees about newly available coverage for certain GLP-1 weight-management medications under a CMS demonstration called the Medicare GLP-1 Bridge. The ad — credited to directors Kwedar and Bentley, shot by Linus Sandgren and scored by Caroline Shaw — aims to inform seniors about access and cost (noted as $50/month under the demonstration). Lilly positioned the spot as a consumer awareness effort for patients and seniors; the campaign continues a multi-year partnership between Lilly and Wieden+Kennedy.

• Eli Lilly and Wieden+Kennedy Portland debuted a film titled “A Life Covered.”
• As of July 1, eligible Medicare Part D enrollees can receive certain GLP-1 medications for weight management at $50/month under a CMS demonstration called the Medicare GLP-1 Bridge.
• Lilly products Zepbound KwikPen and orforglipron (sold as Foundayo) are listed as covered under the demonstration and available to Medicare enrollees.

10-Q Financial Filing Analysis for Johnson & Johnson (2026-10-21)

Johnson & Johnson reported fiscal Q3 2026 sales to customers of $25.40 billion, up 5.9% year-over-year (6.0% operational growth), driven by double-digit growth in Oncology and steady demand in MedTech, which offset biosimilar erosion from STELARA. However, consolidated net earnings collapsed to $210 million (diluted EPS of $0.09) from $5.15 billion in Q3 2025. This sharp profitability decline was primarily caused by a $5.5 billion pre-tax accrual recorded in Other (income) expense, net for a proposed comprehensive settlement of the talc ovarian cancer litigation, alongside a $1.0 billion in-process R&D charge from the Firefly Bio acquisition and ongoing Orthopaedics separation costs.

• Worldwide sales reached $25.40 billion in Q3 2026 (+5.9% YoY) and $74.77 billion for the first nine months (+7.4% YoY), supported by gains in DARZALEX ($4.24 billion in Q3) and TREMFYA ($2.40 billion in Q3).
• Net earnings plummeted to $210 million in Q3 2026 due to a $5.5 billion litigation charge to resolve ovarian talc claims and a $1.0 billion acquired IPR&D charge for Firefly Bio, Inc.
• Total present value of reserves for talc-related legal matters reached approximately $9.0 billion as of September 27, 2026, while the planned separation of the Orthopaedics business remains on track for mid-2027.

Johnson & Johnson announces new ICOTYDE® (icotrokinra) data in difficult-to-treat plaque psoriasis with proven durability through 2-years, affirming its use as a powerful first line systemic therapy

Revolutionary IL-23R targeted oral peptide delivers sustained skin clearance and a favorable safety profile in patients with psoriasis affecting sensitive, highly visible areas of the body. 60% of patients with scalp psoriasis and 89% with genital psoriasis achieved site-specific complete skin clearance at Week 112.

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Transforming cancer patients’ own cells into a targeted treatment is a complex and nuanced process. Jessica Torfs, director of Global CAR-T Supply Chain at Johnson & Johnson, explains what it takes to deliver this cutting-edge personalized therapy.