Eli Lilly in 2Q17: Performance of Neuroscience Products
Another franchise of Eli Lilly and Company’s (LLY) Human Pharmaceuticals segment is its neuroscience franchise. Key drugs in the franchise include Cymbalta, Strattera, and Zyprexa.
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Cymbalta is an antidepressant used for the treatment of depression and anxiety and, at times, bone and muscle pain. Sales of Cymbalta fell ~13.0% to $206.6 million in 2Q17 compared to ~$236.5 million in 2Q16. US sales fell 22.0% to $47.1 million, and international sales fell 9.0% to $159.6 million in 2Q17.
Other drugs in the neuroscience franchise
Other drugs in the neuroscience franchise include Strattera and Zyprexa.
Strattera, a drug for attention deficit/hyperactivity disorder (or ADHD), reported a 17.0% fall in revenues to $186.6 million for 2Q17 compared to $224.6 million for 2Q16. US sales fell 29.0%, while international sales rose 5.0% in 2Q17.
Zyprexa is an antipsychotic drug used in the treatment of brain disorders such as schizophrenia and bipolar disorders. Sales for Zyprexa fell ~33.0% to $140.8 million in 2Q17 compared to $210.7 million for 2Q16. US sales fell 10.0% to $13.0 million, while international sales fell 35.0% to $127.8 million during 2Q17. Zyprexa, whose patent expired in Japan in June 2016, reported a ~56.0% fall in revenues for 2Q17 due to lower sales following generic competition.
To divest the company-specific risks, you can consider the Health Care Select Sector SPDR ETF (XLV), which holds 2.7% of its total assets in Eli Lilly. XLV also holds 11.5% in Johnson & Johnson (JNJ), 6.3% in Merck & Co. (MRK), and 3.2% in Allergan (AGN).