Eli Lilly's second-quarter profit jumps 35 percent, as sales top estimates

Eli Lilly announced Tuesday that second-quarter net income surged 35 percent year-over-year to $1 billion, as sales increased 8 percent to $5.8 billion, besting the $5.6 billion analysts had projected. CEO David Ricks said "Eli Lilly delivered strong revenue growth in the second quarter, building on the momentum of Trulicity, Taltz and the other new products in our portfolio."

The company noted that sales were bolstered in part by increases in worldwide volume largely due to 8-percent pharmaceutical growth driven by Trulicity and Taltz, as well as other new products, such as Basaglar, Jardiance, Lartruvo and Cyramza. Higher realised prices primarily driven by Cialis and Forteo also contributed to quarterly revenue, Eli Lilly added.

Regarding new pharmaceutical products, Trulicity sales jumped 139 percent to $480.2 million, besting expectations of $411 million, as Cyramza revenue climbed 27 percent to $186.3 million. Revenue from Jardiance surged 157 percent year-over-year to $103.2 million. Last December, the FDA approved an expanded indication for Jardiance, which Eli Lilly co-markets with Boehringer Ingelheim, to include reducing cardiovascular death risk in patients with type 2 diabetes.

Taltz and Basaglar generated sales of $138.7 million and $86.6 million, respectively, compared with $19.3 million and $16.3 million in the corresponding 2016 quarter (for related analysis, see ViewPoints: Eli Lilly's Taltz makes a strong early impression with prescribers). Revenue from Lartruvo, which was awarded accelerated approval by the FDA last year for the treatment of soft tissue sarcoma, totalled $47.4 million. 

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Among established therapies, Cialis garnered $627.3 million in sales, which is mostly unchanged from the year-ago quarter, while revenue for Forteo climbed 22 percent to $446.7 million. Meanwhile, Alimta recorded sales of $532.9 million during the quarter, representing a 12-percent decrease compared with the year-ago period.

For the full year, Eli Lilly said it now anticipates sales of between $22 billion and $22.5 billion, lifted from an earlier estimate of $21.8 billion to $22.3 billion. Earnings per share are expected to be in the range of $4.10 to $4.20, versus a previous outlook of between $4.05 and $4.15, with analysts forecasting earnings of $4.12 per share. For further analysis, read Eli Lilly: Q2 highlights and key takeaways.

Meanwhile, Eli Lilly and partner Incyte also disclosed Tuesday that a resubmission of their investigational rheumatoid arthritis drug Olumiant (baricitinib) for FDA approval will be delayed by at least 18 months. The regulator, which rejected the once-daily oral JAK inhibitor in April, has asked the companies for additional clinical data. 

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