Performance of new products
Eli Lilly (LLY) has recently launched various products under different franchises. Some of the new products include Portrazza, Cyramza, Basaglar, Jardiance, and Trulicity.
Portrazza is a new drug for the treatment of metastatic squamous non-small cell lung cancer (or NSCLC). The drug was launched in December 2015 after the US FDA approved the drug on November 24, 2015. Portrazza reported sales of $1.7 million in 1Q16. For more information, read FDA Approves Eli Lilly’s Portrazza based on Squire Study. The European Commission approved Portrazza in combination with other chemotherapy as a first-line treatment of non-small cell lung cancer on February 24, 2016, and the drug was recently launched in Europe.
Other drugs in the oncology field include Pfizer’s (PFE) Inlyta and Sutent, Bristol-Myers Squibb’s (BMY) Opdivo, Merck’s (MRK) Keytruda, GlaxoSmithKline’s (GSK) Mekinist and Tafinlar, and Roche’s Zelboraf.
Cyramza is an oncology drug used in combination with other drugs for the treatment of metastatic NSCLC, advanced gastric cancer, and metastatic colorectal cancer. The sales for Cyramza increased over 90% in 1Q16 to $131 million due to the increased demand in Japan and its launch in European markets for the treatment of metastatic NSCLC and metastatic colorectal cancer.
Trulicity is a drug for improving blood sugar levels in patients with type-2 diabetes. Trulicity reported sales of $143.6 million in 1Q16 as compared to $18.3 million in 1Q15. The increase was mainly due to higher demand in the US markets where the drug reported sales of $119 million during the quarter.
Jardiance is another drug from Eli Lilly to lower blood sugar levels in patients with type two diabetes. Jardiance is a part of the Boehringer Ingelheim and Lilly’s diabetes alliance. The revenues reported were $38.2 million for 1Q16.
Basaglar is an insulin glargine injection to control blood sugar levels in patients with both type one and type two diabetes. Basaglar is expected to be launched in the US markets in December 2016. Eli Lilly reported Basaglar sales of $10.9 million in 1Q16 in Japan and a few European markets.
Investors can consider ETFs like the iShares Morningstar Large Core ETF (JKD), which invests 1.8% of its portfolio in Eli Lilly, and the iShares S&P Global Healthcare ETF (IXJ), which holds ~1.7% of its total assets in Eli Lilly.