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Performance of Eli Lilly’s Endocrine Franchise in 2Q17

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Human Pharmaceuticals business

Eli Lilly & Co.’s (LLY) Human Pharmaceuticals business reported revenues of ~$5.0 billion during 2Q17, an 11.0% increase in revenues compared to ~$4.5 billion during 2Q16. The Human Pharmaceuticals business includes drugs from therapeutic areas such as cardiovascular products, endocrine and neuroscience products, and oncology products.

The endocrine franchise includes the drugs Forteo, Humalog, and Humulin.

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Forteo

Forteo is used for the treatment of osteoporosis. Forteo’s sales totaled $446.7 million during 2Q17, a 22.0% increase compared to $367.6 million in 2Q16. This includes its US sales of $249.8 million, a 34.0% increase compared to 2Q16, and international sales of $196.9 million, a 9.0% increase compared to 2Q16.

Other drugs for osteoporosis include Allergan’s (AGN) Actonel and Roche (RHHBY) subsidiary Genentech’s Boniva.

Humalog

The Humalog portfolio includes mealtime insulin products used to lower the blood sugar levels in patients with diabetes. Humalog products reported sales of $678.4 million during 2Q17. These sales include its US sales of $390.4 million and its international sales of $288.0 million.

Humulin

The Humulin portfolio includes concentrated insulin products that are used to lower blood sugar levels in patients with diabetes mellitus. Eli Lilly’s Humulin products reported sales of $357.8 million during 2Q17, an 8.0% increase compared to $332.3 million during 2Q16.

This increase in revenues was driven by US sales growth of 11.0% to $226.5 million and international sales growth of 3.0% to $131.3 million during 2Q17.

To divest company-specific risks, investors can consider the PowerShares Dynamic Pharmaceuticals ETF (PJP), which holds 4.7% of its total assets in Eli Lilly (LLY). PJP also holds 5.1% in Bristol-Myers Squibb (BMY), 4.6% in Merck & Co. (MRK), and 3.0% in Biogen (BIIB).

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