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Eli Lilly’s Antidepressant and Schizophrenia Drug Sales Are Down

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Neuroscience franchise

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

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Cymbalta

Cymbalta is an antidepressant used to treat depression and anxiety. At times, it’s used to treat bone and muscle pain. Its sales fell by ~14% to $236.5 million in 2Q16—compared to ~$274 million in 2Q15. This includes an increase of ~49% in US sales and a decrease of 25% in international sales. Cymbalta’s revenues fell due to loss of exclusivity in Europe in 2014. However, there was a positive impact from foreign exchange for sales outside US markets.

Zyprexa

Zyprexa is an antipsychotic drug used to treat brain disorders like schizophrenia or bipolar disorders. Its sales fell by ~17% to $211 million during 2Q16—compared to $254 million for 2Q15. Zyprexa sales fell by ~75% to $14.5 million for US markets. The sales in Japan’s markets were flat. The decrease in sales was offset by the positive impact of foreign exchange. Also, Zyprexa has been exposed to generic competition in Japan since June 2016, following patent expiry in December 2015. Zyprexa has generic competition from Mylan (MYL) and Teva Pharmaceuticals (TEVA).

Other drugs in the neuroscience franchise

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

Strattera competes with Shire’s (SHPG) Vyvanse and Intuniv as well as Johnson & Johnson’s (JNJ) Concerta. Investors can consider the PowerShares Dynamic Large Growth ETF (PWB). PWB holds 3.6% of its total assets in Eli Lilly.

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