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Eli Lilly’s Q2 2018 Earnings: Key Developments

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Aug. 3 2018, Updated 9:30 a.m. ET

Eli Lilly’s key developments

Eli Lilly & Co. (LLY) has announced several developments since its second-quarter earnings call. We’ll touch on these key developments in this article.

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Commercial developments

Olumiant (baricitinib) was launched for the treatment of rheumatoid arthritis in the US markets.

Business developments

  • Eli Lilly (LLY) announced a potential initial public offering for Elanco, which is its animal health business.
  • The company acquired ARMO Biosciences.
  • Eli Lilly acquired AurKa Pharma.
  • The company announced an agreement with Anima Biotech.
  • LLY distributed ~$600.0 million in dividends to its shareholders.
  • Eli Lilly repurchased ~$950.0 million in shares. The company exhausted the $5.0 billion share repurchase program and announced a new $8.0 billion share repurchase program.
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Regulatory developments

  • The FDA approved 2-mg Olumiant (baricitinib) for the treatment of rheumatoid arthritis.
  • The FDA and CHMP (Committee for Medicinal Products for Human Use) approved a label update for Taltz (ixekizumab).
  • The FDA approved a label update for Alimta (pemetrexed).
  • The FDA approved a label update for Trulicity (dulaglutide).
  • Eli Lilly submitted nasal glucagon for regulatory approval to the FDA and EMA (European Medicines Agency).

Clinical developments

  • Eli Lilly announced the discontinuation of its Phase 3 clinical trials for Lanabecestat with AstraZeneca (AZN). Lanabecestat is an oral BACE inhibitor for the treatment of patients with Alzheimer’s disease.
  • The company announced that both trials in its EASE Phase 3 program evaluating Jardiance, as well as the CARMELINA trial for Tradjenta, met their primary endpoints. These drugs are being developed in collaboration with Boehringer Ingelheim.
  • Eli Lilly announced that the Phase 3 study evaluating tanezumab for the treatment of patients with osteoarthritis met its primary endpoints. This study is part of its collaborative agreement with Pfizer (PFE).
  • Eli Lilly announced that the COAST-W study evaluating Taltz for the treatment of ankylosing spondylitis met its primary endpoint and major secondary endpoints.

The iShares US Healthcare ETF (IYH) holds 2.5% of its portfolio in Eli Lilly (LLY), 6.1% in Pfizer (PFE), 4.7% in Merck & Co. (MRK), and 2.8% in Gilead Sciences (GILD).

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