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Performance of Eli Lilly’s Cardiovascular Products in 1Q17

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Cardiovascular franchise

Eli Lilly & Co.’s (LLY) cardiovascular franchise includes two drugs, Cialis and Effient. The chart below shows revenues of key cardiovascular products for Eli Lilly since 1Q15.

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Cialis

Cialis reported a 7% decline in its 1Q17 revenues to $533.6 million, compared to $576.7 million in 1Q16. Cialis is a drug for the treatment of erectile dysfunction and benign prostatic hyperplasia.

This decline was driven by lower sales in its US markets and its international markets. The decline, however, was partially offset by an increase in revenues due to higher realized prices for Cialis.

Effient

Effient, an antiplatelet, is used in combination with aspirin for the prevention of blood clots in arteries and stents. This combination is used to reduce the chances of heart-related events for patients with acute coronary syndrome. 

Effient reported a 3% decline in its 1Q17 revenues to $127.8 million, compared to $131.5 million in 1Q16. The decline in revenues was due to lower sales in international markets, partially offset by its strong performance in the US market.

To divest company-specific risk, investors can consider the VanEck Vectors Morningstar Wide Moat ETF (MOAT), which holds 2.5% of its total assets in Eli Lilly. This ETF also holds 2.5% of its total assets in Amgen (AMGN), 2.5% of its total assets in Allergan (AGN), and ~2.5% of its total assets in Bristol-Myers Squibb (BMY).

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