Eli Lilly And Co (NYSE:LLY) misses analysts’ expectations

Eli Lilly And Co (NYSE:LLY) stock fell 0.79% (As on August 5, 11:17:37 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the second quarter of FY 22. The company has cut its full-year profit forecast for the second time as lower insulin prices and competition for the company’s cancer drug bruised its second-quarter earnings. U.S. drugmakers have been pulled up by lawmakers in recent months over rising costs of insulin. The U.S. House of Representatives in March passed a bill capping monthly out-of-pocket insulin costs for those with health insurance at $35. Lilly, which cut prices of insulin Lispro products by 40% from January 1, reported a 26% fall in sales of its popular insulin products Lispro and Humalog to $447.1 million in the second quarter. Revenue from its cancer drug, Alimta, also slumped 63% to $227.7 million due to the entry of copycat drugs. The drugmaker is now focusing on its upcoming and new launches, including the recently approved diabetes drug Mounjaro, which recorded $16 million during the quarter. Its net income fell to $952.5 million in the quarter ended June 30, from $1.39 billion, a year earlier.

Eli Lilly & Co. signage is displayed outside the company’s office in La Jolla, California, U.S., on Tuesday, Aug. 23, 2011. Eli Lilly has developed productive alliances and partnerships that advance the capacity to develop innovative medicines at lower cost. Photographer: Konrad Fiedler/Bloomberg via Getty Images

LLY in the second quarter of FY 22 has reported the adjusted earnings per share of $1.25, missing the analysts’ estimates for the adjusted earnings per share of $1.71. The company had reported 4 percent fall in the adjusted revenue to $6.49 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue of $6.85 billion. This is due to lower realized prices and lower Alimta revenue following the entry of generics more than offset volume growth from key growth products. Total revenue grew 6% excluding revenue from Alimta, the sale of the company’s rights to Cialis in China in Q2 2021, and COVID-19 antibodies.

Eli Lilly & Co. expects FY2022 EPS to be in the range of $7.90-$8.05, versus the consensus of $8.08.

On the other hand, the U.S. Food and Drug Administration (FDA) has accepted, with Priority Review designation, donanemab for Alzheimer’s disease for review under the accelerated approval pathway. The FDA also accepted, with Priority Review designation, pirtobrutinib for mantle cell lymphoma for patients previously treated with a BTK inhibitor for review under the accelerated approval pathway. In collaboration with the U.S. government, Lilly intends to make bebtelovimab commercially available for purchase by U.S. states/territories, hospitals and a broad set of other providers through a sole distributor beginning the week of Aug. 15, which is prior to the anticipated depletion of the U.S. government’s currently available supply.

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