Performance of new products
Eli Lilly (LLY) has 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 $4 million in 2Q16. The European Commission approved Portrazza in combination with other chemotherapy treatments 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. Cyramza sales increased over 68% in 2Q16 to $147 million due to the increased demand in Japan and 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 $201 million in 2Q16 as compared to $44 million in 2Q15. The increase was mainly due to higher demand in the US markets where the drug reported sales of $161 million during the quarter.
Jardiance is another drug from Lilly to lower blood sugar levels in patients with type 2 diabetes. Jardiance is a part of the Boehringer Ingelheim and Lilly’s diabetes alliance. The revenues reported were $40 million for 2Q16 as compared to $11 million for 2Q15.
Basaglar is an insulin glargine injection to control blood sugar levels in patients with both type 1 and type 2 diabetes. Basaglar is expected to be launched in the US markets in December 2016. Lilly reported Basaglar sales of $16 million in 2Q16 in Japan and a few European markets.
The company also launched Taltz in US markets and European markets in April and July, respectively. Investors can consider ETFs like the iShares S&P Global Healthcare ETF (IXJ), which holds ~1.7% of its total assets in Lilly in order to divest the risk.