Eli Lilly (NYSE: LLY), an American Pharmaceutical company, fell short of first quarter profit estimates on Tuesday as demand for its Covid-19 antibody therapies dropped amid the rise in vaccines. Due to the complications associated with administering the treatments, interest in both Lilly and Regeneron antibody drugs has diminished. Shares tumbled 3% during early morning trading.
According to Mizuho Securities analyst Vamil Divan, he had anticipated a decrease in sales of the antibody Covid-19 treatment. Nevertheless, Divan says he did not expect sales of plaque psoriasis drug Taltz or cancer medicine Verzenio to also fall.
“We assumed lower sales of Covid-19 antibodies would impact the quarter and guidance, and were somewhat below consensus on several products, but the extent of the miss, especially for important products such as Taltz and Verzenio, is surprising to us,” he said in a report to clients.
The company earned USD1.87 a share, compared to the estimated USD2.13 per share. Furthermore sales amounted to USD810.1 Million, lower than analysts anticipated USD986 Million, according to Guggenheim analysts.
Moving forward, the company expects adjusted full-year earnings of USD7.80 to USD8 per share, compared to its previous estimates of USD7.75 to USD8.40 a share. Sales are anticipated to reach USD1 Billion to USD1.5 Billion, down from the previously expected USD1 Billion to USD2 Billion.
“While this was a disappointing quarter for Lilly compared with expectations, much of the lowered guidance was due to Covid-19 impacts,” Edward Jones analyst Ashtyn Evans said in her report to clients. “Sales grew 7% excluding Covid-19 impacts, and we continue to have a favorable view of the company’s new drug portfolio and long-term earnings growth.”