Assessing Eli Lilly’s Latest Performance by Segment

Eli Lilly’s business segments

Eli Lilly and Company’s (LLY) business is divided into two segments: the Human Pharmaceutical segment and Elanco, the Animal Health segment.

Assessing Eli Lilly’s Latest Performance by Segment

The above chart compares Eli Lilly’s quarterly revenues by segment since the first quarter of 2017. Its overall revenue rose 7% at a constant exchange rate during the second quarter of 2018.

Human Pharmaceutical

The Human Pharmaceutical segment contributes over 87% of Eli Lilly’s total revenue. During the second quarter, the segment reported revenue of $5.6 billion, an 8% YoY (year-over-year) rise in revenue compared to the second quarter of 2017.

At constant exchange rates, the Human Pharmaceutical segment reported an 8% rise in revenue during the quarter.

The segment’s US markets reported an 11% rise, while its European markets reported a 14% rise, and its Japanese markets reported a 6% rise. The sales from the rest of the world reported a 10% rise in the quarter.

Elanco

Eli Lilly operates its Animal Health segment through Elanco. Elanco reported revenue of ~$792.1 million in the second quarter, nearly 12.5% of the company’s total revenue in the period. Elanco reported a 1% rise in revenue in the quarter driven by a 1% favorable impact of foreign exchange and a 2% favorable impact of prices offset by a 2% decrease in volumes.

At constant exchange rates, the Animal Health segment reported a 1% fall in revenue.

Eli Lilly announced in July that it had plans to separate the Elanco segment through a potential IPO.

The First Trust NASDAQ Pharmaceuticals ETF (FTXH) holds 7.7% of its total investments in Eli Lilly, 4.2% in Merck & Co. (MRK), 4.1% in Bristol-Myers Squibb (BMY), and 4.0% in Allergan (AGN).