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Eli Lilly’s Segment-by-Segment Performance in 4Q17

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Segment-by-segment performance

Eli Lilly and Company’s (LLY) products are classified into two business segments: Human Pharmaceuticals and Animal Health.

The chart above compares Eli Lilly’s segment-by-segment quarterly revenues since 1Q16.

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Human Pharmaceuticals segment

The Human Pharmaceuticals segment includes revenues from Eli Lilly’s cardiology products, endocrinology products, oncology products, neuroscience products, and other products. The segment is the largest revenue contributor for Eli Lilly. It contributed ~87.2% of the company’s total revenue in 4Q17.

The Human Pharmaceuticals segment reported a 9% rise in revenue to ~$5.4 billion in 4Q17 compared to 4Q16. This growth was driven by strong sales of new pharmaceutical products, including Basaglar, Cyramza, Jardiance, Lartruvo, Olumiant, Taltz, and Trulicity, during the quarter.

Eli Lilly’s US revenue saw a 9% rise in 4Q17 driven by a ~5% positive impact of prices and ~4% growth in volumes. The company’s European revenue saw a 17% rise in 4Q17 driven by ~9% growth in sales volumes, an 8% positive impact of foreign exchange, and a ~1% decrease in prices. The company’s Japanese markets reported a 4% rise in revenue in 4Q17 driven by 10% growth in volumes, a marginal decrease in prices, and a ~5% negative impact of foreign exchange.

Animal Health segment

Elanco is Eli Lilly’s Animal Health segment. Elanco contributed ~12.8% of the company’s total revenue in 4Q17. Its revenue fell ~6% to $790.9 million in 4Q17 compared to 4Q16. The fall was driven by an 8% fall in its volumes, and it was offset by a ~1% favorable impact of foreign exchange and a ~1% rise in revenue due to higher realized prices.

The First Trust NASDAQ Pharmaceuticals ETF (FTXH) holds 4.0% of its total investments in Eli Lilly, 4.0% in Merck & Co. (MRK), 7.8% in Johnson & Johnson (JNJ), and 7.8% in Pfizer (PFE).

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