Eli Lilly lifts annual earnings guidance as second-quarter sales of Trulicity cross $1 billion

Headline results for the second quarter:

Revenue

$5.6 billion (forecasts of $5.6 billion)

+1%

Profit

$1.3 billion

Versus loss of $259.9 million

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

CEO David Ricks noted that Eli Lilly's "newer medicines reached more patients in the second quarter, allowing the company to grow revenue despite headwinds, including the expiration of the US patent for Cialis."

Other results:

  • US revenue: $3.3 billion, flat year-on-year, mainly due to lower prices despite rising volumes
  • Non-US revenue: $2.4 billion, +2%
  • Trulicity: $1 billion, +32%, but below forecasts of $1.1 billion, fuelled by increased demand partially offset by lower realised prices because of higher contracted rebates, increased coverage gap funding requirements in Medicare Part D and changes in segment mix
  • Humalog: $677.6 million, -12%, coming in above expectations of $659.7 million, including a 15% decline in US sales due to lower realised prices because of higher contracted rebates, increased coverage gap funding requirements in Medicare Part D and the impact of patient affordability programmes
  • Alimta: $577.8 million, +4%, including 21% revenue growth in the US fuelled by increased demand, as well as the impact of buying patterns
  • Forteo: $360.8 million, -17%, with US sales falling by 23% due to decreased demand, as well as lower realised prices.
  • Taltz: $353.8 million, +61%, with US revenue jumping 54% on higher demand
  • Humulin: $322.6 million, -7%, with US sales growth of 48%, fuelled by higher realised prices and increased demand
  • Basaglar: $290.7 million, +44%, with 48% higher US revenue on higher realised prices and increased demand
  • Jardiance: $231.9 million, +58%, including 67% US sales growth driven by increased demand
  • Cyramza: $241.8 million, +11%, with US sales rising by 19% primarily on higher demand
  • Cialis: $200.2 million, -63%, including a 90% decline in US revenue due to generic competition
  • Verzenio: $133.9 million, versus $57.7 million in the prior year
  • Olumiant: $102.4 million versus $44.7 million in the prior year
  • Emgality: $34.3 million, versus $20.1 million in the prior year, below analyst forecasts of $42.3 million

Looking ahead:         

Eli Lilly now expects earnings per share for 2019 of between $5.67 and $5.77, lifted from a prior prediction of between $5.60 and $5.70. Meanwhile, annual sales are still forecast in the range of $22 billion to $22.5 billion. Analysts predict annual earnings of $5.66 per share.

Pipeline update:

Eli Lilly disclosed that during the quarter, Phase I development of a PD-L1/TIM-3 bispecific antibody for cancer was halted, as well as an IL-23/CGRP therapy in immunology.

The company also reported Tuesday that in the Phase III MONARCH 2 study, Verzenio (abemaciclib) in combination with AstraZeneca's Faslodex (fulvestrant) demonstrated a significant improvement in overall survival in women with hormone receptor (HR)-positive, HER2-negative advanced or metastatic breast cancer who had previously been treated with endocrine therapy. Eli Lilly said it plans to submit the data for the oral CDK4/6 inhibitor to regulatory authorities.

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