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What Are Eli Lilly’s 4Q16 Expectations for New Products?

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Expectations for new products

Eli Lilly (LLY) has launched new products in various franchises including Taltz, Portrazza, Cyramza, Basaglar, Jardiance, and Trulicity.

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Portrazza

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. The European Commission approved Portrazza in combination with other chemotherapy as a first-line treatment for non-small cell lung cancer on February 24, 2016. Portrazza revenues are expected to increase in 4Q16.

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.

Taltz

The company launched Taltz in US markets in April 2016, while it launched Taltz in the European markets in July 2016. Taltz revenues are expected to increase during 4Q16 following increased sales in US markets and European markets.

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Cyramza

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 revenues are expected to increase in 4Q16, mainly due to increased demand in Japan and its launch in European markets for the treatment of metastatic NSCLC and metastatic colorectal cancer.

Trulicity

Trulicity is a drug to improve blood sugar levels in patients with type-2 diabetes. The increased demand of Trulicity in the US markets is expected to drive revenue growth for the drug in 4Q16.

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Jardiance

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 are expected to increase in 4Q16.

Basaglar

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. Basaglar is expected to report an increase in revenues for 4Q16.

Investors can consider ETFs like the iShares Morningstar Large Core ETF (JKD), which invests 1.4% of its portfolio in Lilly, in order to divest the risk.

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