Performance by business segment
Eli Lilly (LLY) is classified into two business segments: human pharmaceuticals and animal health. Over 84% of revenues come from the human pharmaceuticals segment.
Revenues by segment
The human pharmaceuticals segment, which contributes ~84.5% of total revenues for Eli Lilly, reported revenues of $4,110 million for 1Q16, a ~6% increase as compared to 1Q15. The human pharmaceuticals segment reported an increase in revenues of 1% due to price and 8% due to volume, which was offset by a 3% negative impact of foreign exchange. The revenues were driven by increased sales of Humalog, Cialis, Strattera, Effient, Erbitux, and Trajenta. Increased sales were partially offset by lower sales of Alimta, Humulin, Cymbalta, and Zyprexa.
For the US markets, the pharmaceuticals segment revenues increased by 4% due to higher prices and 13% due to higher volumes, leading to an overall pharmaceutical revenue increase by 17% in 1Q16. Similarly, for Japan markets, the pharmaceuticals segment revenues fell by 4% due to price, but improved 18% due to higher volumes, and foreign exchange had a positive impact of 2%. These revenues were offset by lower sales volumes in emerging markets and lower prices in the Europe-Canada markets during 1Q16.
Lilly’s animal health segment operates through Elanco. Elanco contributed ~15.5% of total revenues for Lilly, reporting revenues of $754.6 million for 1Q16. The revenues are nearly flat as compared to revenues of $749.8 million for 1Q15.
We’ll discuss the key products separately in the coming articles. Investors can consider ETFs like the PowerShares Dynamic Pharmaceuticals Portfolio ETF (PJP), which holds ~5.0% of its total assets in Eli Lilly. PJP also holds ~5.1% of its total assets in Amgen (AMGN), ~5.2% of its total assets in Bristol-Myers Squibb (BMY), and ~4.5% of its total assets in Allergan (AGN). The Vanguard Healthcare ETF (VHT) holds ~2.2% of its total assets in Lilly.