Eli Lilly Revenue Rise Helped by New Products
July 26 2016 - 8:00AM
Dow Jones News
Eli Lilly & Co. reported Tuesday that revenue rose more than
expected in the most recent quarter, as sales of new drugs padded
increases in established products.
"Lilly is in the midst of one of the most productive periods of
new product launches in our company's history, with new medicines
making a substantial contribution to our revenue growth for the
first half of the year," Chief Executive John Lechleiter said.
Recently released drugs, including diabetes treatment Trulicity
and cancer drug Cyramza, helped push 10% volume growth in the
quarter.
Meanwhile, sales of Humalog, Lilly's biggest product by revenue,
rose 7% to $701.9 million. Revenue for the fast-acting form of
insulin in the U.S. advanced 5% on higher demand despite lower
realized prices. Sales abroad increased 11% on higher volume,
partially dented by unfavorable foreign exchange rates.
Blockbuster erectile-dysfunction drug Cialis sales shot up 11%
to $630.5 million. U.S. revenue jumped 24% on higher pricing, while
revenue outside the U.S. fell 4% on currency challenges and lower
volume.
Sales in its animal-health division, which Lilly bought from
Novartis AG for about $5.4 billion in 2014, rose 2.3% to $859.8
million.
In all for the June quarter, Lilly reported a profit of $747.7
million, or 71 cents a share, up from $600.8 million a share, or 56
cents, a year prior. Excluding charges related to the Venezuelan
financial crisis and other items, earnings per share fell to 86
cents from 90 cents.
Revenue grew 8.6% to $5.4 billion, driven by an 8% rise in
volume as realized prices and the impact of foreign exchange
rates—which recently had chipped away at the top line, as Lilly
does significant business abroad—remained relatively flat from a
year ago.
Analysts projected 86 cents in adjusted per-share profit on
$5.15 billion in sales.
Gross margin fell 2.6 percentage points to 72.9%, mostly owing
to a lower benefit from foreign exchange rates.
Lilly backed its earnings guidance for the year, which it had
cut down in the previous quarter, citing the Venezuelan financial
crisis. The company expects annual earnings per share of $2.68 to
$2.78. Revenue is still anticipated to come in at $20.6 billion to
$21.1 billion.
Shares, inactive premarket, have risen 7.5% over the past three
months.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
July 26, 2016 07:45 ET (11:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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