uploads///Chart  Neuroscience

Revenues from Eli Lilly’s Cymbalta Are Depressed Internationally

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Aug. 3 2016, Updated 9:04 a.m. ET

Neuroscience franchise

Another franchise from Eli Lilly’s (LLY) human pharmaceuticals segment is the neuroscience franchise. Key drugs in this segment include Zyprexa, Cymbalta, and Strattera.

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Zyprexa

Zyprexa is an antipsychotic drug used in the treatment of brain disorders like schizophrenia or bipolar disorders. The sales for Zyprexa decreased by ~17% to $211 million during 2Q16, as compared to $254 million for 2Q15. Zyprexa sales declined by ~75% to $14.5 million in US markets, while the sales for Japan markets were flat as the decrease in sales was offset by the positive impact of foreign exchange. Also, Zyprexa has been exposed to generic competition in Japan after the patent expiry in December 2015. Zyprexa has generic competition from Mylan (MYL) and Teva Pharmaceuticals (TEVA).

Cymbalta

Cymbalta is an antidepressant used for the treatment of depression and anxiety, and at times for bone and muscle pain. The sales of Cymbalta decreased by ~14% to $236.5 million in 2Q16, as compared to ~$274 million in 2Q15. This includes an increase of ~49% in US sales and a decrease of 25% in international sales. Cymbalta revenues declined due to the loss of exclusivity in Europe in 2014, while there was a positive impact of foreign exchange for sales outside the US markets.

Other drugs for neuroscience franchise

Other drugs in the neuroscience franchise are Strattera and Prozac. Strattera, a drug for attention deficit or hyperactivity disorder, reported a 17% increase in revenues to $225 million for 2Q16, as compared to $192 million for 2Q15. The US sales for Strattera increased by 19% while the international sales increased by 15% during 2Q16.

Strattera competes with Shire’s (SHPG) Vyvanse and Intuniv and Johnson & Johnson’s (JNJ) Concerta. 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.

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