1 Aug

Eli Lilly’s Q2 2018 Earnings: Oncology Products

WRITTEN BY Mike Benson

Oncology products

Eli Lilly & Co.’s (LLY) Human Pharmaceuticals business includes oncology products such as Alimta, Cyramza, and Erbitux. For the second quarter, the segment’s revenues were driven by the strong performance of Alimta, Cyramza, Erbitux, and the portfolio’s other drugs. The chart below shows the revenues for LLY’s key oncology products since the first quarter of 2017.

Eli Lilly’s Q2 2018 Earnings: Oncology Products

Alimta

Alimta, a blockbuster chemotherapy drug, reported 4.0% growth in YoY (year-over-year) revenues to $555.9 million in the second quarter. Its revenues reached $532.9 million in the second quarter of 2017. This revenue growth was driven by a 3.0% increase in its US sales and 6.0% growth in sales from its international markets during the quarter.

Cyramza

Cyramza reported 17.0% growth in YoY revenues of $218.8 million during the second quarter, compared to revenues of $186.3 million during the second quarter of 2017. This growth was driven by an increase in its US and international sales. The drug’s US sales rose 10.0%, and its international sales increased 22.0% during the quarter.

Erbitux

Erbitux, an oncology drug for the treatment of metastatic colorectal cancer as well as head and neck cancer, reported 5.0% YoY growth in revenues to $166.4 million in the second quarter. Erbitux reported revenues of $186.3 million in the second quarter of 2017. This growth was driven by strong second-quarter sales in the US markets and nearly flat revenues from its international markets.

Other oncology products

Other products in Eli Lilly’s oncology portfolio include Lartruvo and Verzenio. We’ll discuss Verzenio’s performance later in this series.

Lartruvo

Lartruvo, a drug approved for the treatment of advanced soft tissue sarcoma, reported a 69.0% increase in revenues to ~$79.9 million in the second quarter. It reported revenues of $47.4 million in the second quarter of 2017. In the second quarter, its US sales reached $51.0 million, and its international sales totaled $29 million.

The Health Care Select Sector SPDR ETF (XLV) holds 2.7% of its total portfolio in Eli Lilly (LLY), 2.1% in Biogen (BIIB), 4.0% in AbbVie (ABBV), and 6.6% in Pfizer (PFE).

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