Performance of Eli Lilly’s Neuroscience Products in 1Q17 – Market Realist

What Drives Eli Lilly's Valuation after Its 1Q17 Earnings? PART 8 OF 9

Eli Lilly & Co.s (LLY) neuroscience products portfolio includes the drugs Cymbalta, Strattera, and Zyprexa.The chart below shows revenues for its three key neuroscience productsCymbalta, Strattera, and Zyprexasince 1Q15.

Cymbalta, an antidepressant, reported a 12% decline in its 1Q17 revenues to $174.6 million, compared to ~$198.7 million in 1Q16. The drug reported lower sales outside the US markets, specifically Europe and Canada, due to the loss of exclusivity

Cymbalta reported a 20% decline in revenues to $140.5 million from international markets, partially offset by 46% growth in the US market to $34.1 million.

Strattera, a drug for the treatment ofattention-deficit hyperactivity disorder (or ADHD), reported 4% growth in its 1Q17 revenues to $196.2 million, compared to $188.1 million for 1Q16. This growth was driven by strong performance in its US and international markets.

Zyprexa, an antipsychotic drug, reported a 31% decline in revenues to $147.5 million in 1Q17, compared to $212.8 million in 1Q16. The decline was due to the exposure to generic competition in theUS and its international markets.

For broad-based exposure to the industry, investors can consider the Vanguard Healthcare ETF (VHT), which holds 2.4% of its total assets in Eli Lilly. VHT also holds 10.0% of its total assets in Johnson & Johnson (JNJ), 2.9% of its total assets in Celgene (CELG), 2.2% of its total assets in Abbott Laboratories (ABT), and 1.7% of its total assets in Biogen (BIIB).

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Performance of Eli Lilly's Neuroscience Products in 1Q17 - Market Realist

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