New drugs boost Eli Lilly, ahead of animal health IPO
Eli Lilly closed the second quarter with substantial revenue increase thanks to a strong performance from a group of recently-approved drugs.
The Q2 2018 financial results impressed investors with better than expected sales of most of the key Lilly’s products.
The total worldwide revenue was $6.36 billion, an increase of 9% compared the second quarter of 2017. It was driven by a 7% increase in sales volume and 2% by favourable impact of foreign exchange rates.
The powerhouse created by new products like cancer drug Cyramza, diabetes blockbuster Trulicity stealing market share from Victoza, and arthritis injections Talz recorded an average 73% revenue increase in the first half the year.
Indianapolis-based Lilly also launched two very strong new treatments: breast cancer drug Verzenio and Olimiant used in rheumatoid arthritis.
Established products such as Humalog, Cialis, Alimta, Forteo and Humulin are also still propping up revenues.
David Ricks, Lilly’s chairman and CEO said: “Lilly delivered strong results once more in the second quarter in terms of operational performance, pipeline advancements, and strategic objectives.”
“Our pipeline continued to demonstrate our commitment to scientific innovation, highlighted by forward progress for key molecules, several positive late-stage data readouts and the addition of promising new assets through business development.”
Investors also welcomed the information about planned spin-off of its animal health division, which will be called Elanco.
“In addition, the strategic decision to pursue an IPO for our Elanco animal health business will maximise the after-tax value for Lilly shareholders and provide Lilly with even greater focus on our human pharmaceutical business,” added Ricks.
The company plans a debt offering in the third or fourth quarter of this year before the Elanco IPO, and it will dispose of its remaining interest in Elanco next year. Sales in the unit were flat year over year in the first half of the year at $1.6 billion.
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