Lilly posts strong quarterly results, faces challenges ahead
pharmafile | July 22, 2011 | News story | Sales and Marketing | lilly, patent expiry
Lilly edged toward double-digit growth in the second quarter, but looming patent expires threaten this trend.
Second quarter revenue grew by a healthy 9% to $6.3 billion, aided by favourable exchange rates that raised the value of sales in foreign markets.
But this growth is not expected to last as the US firm faces a series of dramatic ‘patent cliffs’, including the loss of US exclusivity on its $5 billion a year schizophrenia drug Zyprexa in October.
Antidepressant brand Cymbalta, which grew by an impressive 16% this quarter to just over $1 billion, is also expected to face generic erosion from mid-2013.
Patent issues are already impacting sales, with second quarter sales of chemotherapy drug Gemzar down by 62% to $112 million following its patent expiry last November.
Nevertheless, Lilly did see a 3% increase in US sales that rose to $3.3 billion in the second quarters, primarily due to increased volume and, to a lesser extent, higher prices.
However, total revenue from the second quarter was cut by around $110 million from the impact of President Obama’s healthcare reforms, which increased taxes on pharma companies within the country.
Total revenue outside the US kept within a health margin, growing by 17% to $2.9 billion, due to increased volume and the positive impact of foreign exchange rates.
John Lechleiter, Lilly’s chief executive, said: “In the second quarter, Lilly once again achieved solid volume-driven revenue growth, despite the negative impact of generic versions of gemcitabine in the United States.
“Our financial results reflect the solid performance of many of our marketed products, as well as important investments we are making to expand our commercial opportunities and deliver the next wave of potential new medicines to patients.
“At the same time, we are investing for the company’s future by supporting the launches of new medicines and new indications, as well as funding our R&D pipeline, which now boasts 70 potential new medicines in clinical development,” he concluded.
Ben Adams
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