LLY · 10-Q · 2026Q1 · Full report

Acquisition Activity and IPR&D

ELI LILLY & Co · 2026-04-30 · Importance 96 · Surprise 100 · Contradicted

The company has entered into acquisition agreements in 2026 that remain subject to customary closing conditions. Potential amounts payable at closing for these pending acquisitions would be up to approximately $12 billion. Acquired IPR&D charges were $1,572 million in the three months ended March 31, 2026 versus a $63 million charge in the prior-year quarter, and the 2025 acquired IPR&D related primarily to the Scorpion Therapeutics acquisition (STX-478). The pending acquisitions and elevated acquired IPR&D charges are material to near-term cash and earnings comparisons.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
operating_incomenegativerealized-7.9%Acquired IPR&D charges for the three months ended March 31, 2026: $1,572 million; for the three months ended March 31, 2025: $(63) million.
net_incomenegativerealized-7.9%Acquired IPR&D charges for the three months ended March 31, 2026: $1,572 million; for the three months ended March 31, 2025: $(63) million.