Newly approved drugs push Lilly’s revenues 5% up, but net income went 3% down

The world’s leading drugmaker Eli Lilly saw a decline in net income for the third quarter 2016 year over year, despite 5% growth in revenue, for the same period of 2015.

The company had $5,191.7M of revenue in the third quarter of this year, which is 5% up from the same period last year. Net income was reported to be $778M in 3Q 2016, 3% lower compared to the 3Q 2015, when it was 799,7

Lilly expects to see the EPS of $2.76.to $2.76 on a reported basis.

John C. Lechleiter, Ph.D., Lilly’s chairman, president and chief executive officer, who will retire as president and chief executive officer effective December 31, 2016, and be replaced by David A. Ricks, has said that the growth in the third quarter was influenced by the company’s portfolio of recently approved medicines including Trulicity, Cyramza, Taltz and Jardiance.

“Our pipeline also continues to advance with a wide array of promising treatments for conditions from Alzheimer’s disease to diabetes and cancer. Our focus on innovation and bringing important new medicines to the people who need them is leading Lilly into a new era of growth for the benefit of patients and shareholders alike,” said Lechleiter.

Buying of Boehringer Ingelheim Vetmedica

The company has also announced an agreement to acquire Boehringer Ingelheim Vetmedica, Inc.’s U.S. feline, canine and rabies vaccines portfolio, as well as a fully integrated manufacturing and research and development site.

The 5% increase in worldwide volume was driven by new pharmaceutical products, including Trulicity, Cyramza, Taltz and Jardiance, as well as Humalog and Erbitux (due to the transfer of commercialization rights in North America to Lilly), partially offset by lower volumes for Zyprexa®, animal health products, Alimta and Cialis.

Revenue in the U.S. increased 12 percent to $2.838 billion, while the revenue outside the U.S. decreased 3 percent to $2.354 billion, as lower realized prices and volume, primarily from the losses of exclusivity for Cymbalta in Europe and Canada, Zyprexa in Japan and Alimta in several countries, more than offset increased volume for several recently launched pharmaceutical products, including Trulicity and Cyramza, and the favorable impact of foreign exchange rates, primarily the Japanese yen, partially offset by other foreign currencies.