As we discussed earlier, Eli Lilly and Co.’s (LLY) Human Pharmaceuticals segment reported an increase of ~10% at ~$4.5 billion for 2Q16—compared to ~$4.1 billion for 2Q15. This segment deals with different therapeutic areas including endocrine, neuroscience, oncology, cardiovascular, and others. A few of the blockbuster drugs in this franchise are Humalog, Humulin, and Forteo.
Humulin’s portfolio consists of concentrated insulin products used to lower blood sugar levels in patients with type-1 and type-2 diabetes mellitus. The products are used in cases where patients require a higher dosage of insulin. The sales of Humulin products increased by ~5% to $332 million in 2Q16—compared to ~$316 million in 2Q15. This includes an ~9% increase in US sales and nearly flat revenues from international sales. The increase was due to higher volumes.
Humalog’s portfolio consists of different meal-time insulin products used to lower blood sugar levels in patients with diabetes. The sales for Humalog products rose by 7% to $701.9 million during 2Q16—compared to $654 million for 2Q15. This included a 5% increase in US sales to $420 million and an 11% increase in international sales at $282 million. The increase was driven by higher demand and volumes traded. It was partially offset by lower realized prices and a negative impact of foreign exchange.
Forteo is another blockbuster drug from Eli Lilly. It’s used to treat osteoporosis. Forteo sales rose by ~12% to $368 million in 2Q16—compared to ~$328 million in 2Q15. This includes an increase of ~29% in US sales, partially offset by a 1% decline in international sales. The volume growth and favorable impact of foreign exchange substantially offset the decline due to lower realized prices in international markets.
A few other drugs for osteoporosis include Allergan’s (AGN) Actonel and Roche’s (RHHBY) subsidiary Genentech’s Boniva. To divest the risk, investors can consider ETFs like the Vanguard S&P 500 ETF (VOO). VOO holds ~0.4% of its total assets in Eli Lilly.