What Drove Eli Lilly's 1Q16 Revenue Growth?
Eli Lilly’s (LLY) cardiovascular franchise contributed ~15.5% of the company’s total revenues in 1Q16. Key drugs in this segment include Cialis and Effient.
Cialis is a drug for the treatment of erectile dysfunction and benign prostatic hyperplasia. Cialis sales increased by over 7% to $576.7 million during 1Q16, as compared to $538.3 million for 1Q15. This included an increase of 31% in the US markets and a decrease of ~13% in international sales. Sales in US markets were driven by higher realized prices while the sales in international markets decreased due to lower volumes and the negative impact of foreign exchange. Cialis competes with Pfizer’s (PFE) Viagra, Auxilium’s (AUXL) Stendra, and GlaxoSmithKline (GSK) and Bayer’s Levitra.
Effient is antiplatelet used with aspirin for prevention of blood clots in arteries and stents, thereby reducing the chances of heart-related events for patients with an acute coronary syndrome. Effient sales increased by nearly 8% to $131.5 million in 1Q16, as compared to ~$121.8 million in 1Q15. This included an increase of 16% in the US markets and a decrease of ~20% in international sales.
Other drugs in the cardiovascular franchise
Other drugs in the cardiovascular franchise include Adcirca and Reopro. Adcirca is the same as Cialis but used for pulmonary arterial hypertension. Adcirca reported a 6% growth in revenues at $20 million for 1Q16. Reopro is a glycoprotein inhibitor injection used to prevent blood clots in arteries for patients with an acute coronary syndrome. Reopro is manufactured by Janssen Biologics, a Johnson & Johnson Company (JNJ), but it’s marketed by Eli Lilly. Reopro reported a decrease in revenues to $17.8 million in 1Q16.
Investors can consider ETFs like the SPDR S&P Pharmaceuticals ETF (XPH), which invests 3.9% of its portfolio in Eli Lilly, or the iShares US Healthcare ETF (IYH), which holds ~2.9% of its total assets in Eli Lilly.
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