Eli Lilly (NYSE: LLY) surpassed Wall Street Expectations regarding fourth-quarter profit on positive sales of its diabetes and cancer drugs.
The American pharmaceutical company reported USD871.2 Million in quarterly sales of bamlanivimab, its Covid-19 therapy, as the U.S. strives to stockpile the drug for emergency use. Mizuho analysts had predicted sales would only reach USD813 Million.
Eli’s most profitable product, Trulicity, brought in sales topping expectations by USD76 Million according to Mizuho Securities analyst Vamil Divan. Furthermore, cancer drug Alimta, human growth hormone Humatrope as well as arthritis med Olumiant also surpassed expectations.
“Much of the sales beat came from Trulicity and Alimta, and the quarter was also boosted by higher other income,” he said in a report to clients. “It is clear that Lilly continues to execute well, and we expect the stock to react favorably to today’s results.”
The company reported earnings of USD2.75 a share, in comparison to analysts anticipated USD2.37 per share. Sales skyrocketed 22% to USD7.55 Billion, much higher than the expected USD7.27 Billion.
“Lilly closed a complex year by delivering impressive results in the fourth quarter of 2020. We finished the year with strong momentum in our core business areas, as volume-based revenue growth for our newest medicines and initial sales of our COVID-19 antibody therapy, coupled with our ongoing productivity agenda, drove robust margin expansion and solid earnings growth,” said David A. Ricks, Lilly’s chairman and CEO. “I am also encouraged by exciting recent data readouts for three of our most important pipeline assets: tirzepatide, LOXO-305 and donanemab. Each of these potential medicines has a chance to significantly improve patient outcomes in areas of high unmet medical need, and, should they go on to receive approvals, reinforce our growth prospects for the decade ahead.”
Eli Lili shares rose 2.1% during premarket trading.