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Eli Lilly Beats Q4 Profit Estimates With Surge In Demand For Its Cancer And Diabetes Drugs

Eli Lilly Beats Q4 Profit Estimates With Surge In Demand For Its Cancer And Diabetes Drugs
A surge in demand for its diabetes and cancer drugs a partial benefit from the sales of its Covid-19 antibody treatment helped the drug making giant Eli Lilly and Co beat estimates of Wall Street analysts for the profits of the company for the fourth quarter on Friday.
The quarterly sale revenues as reported by the company was at $871.2 million for its Covid-19 therapy and treatment, bamlanivimab, as the company also benefitted from the United States government stocking up the drug for emergency usage during the quarter.
According to analysts at Mizuho, the company was expected to generate revenues of $813 million from the sale of the Covid-19 drug during the quarter.
The Covid-19 treatment therapy of the company belongs to a class of drugs known as monoclonal antibodies and that medicine has been approved for use by the United States for patients who are at risk of serious illness from the viral infection.
The company also beat market expectations for the sale revenues of its key drugs as the surge in demand for the drugs helped the company to offset the impact on its pricing of the drugs caused by rebates or after-market discounts to health insurers as well as to pharmacy benefits managers
According to seven analysts polled by Refinitiv expected the sale revenues of the company’s diabetes drug Trulicity to come in at $1.39 billion but the company reported a 24 per cent rise in the revenues which neat estimates and came in at $1.50 billion.
There was also a 23 per cent growth in the sale of cancer treatment Alimta at $652.7 million which also easily beat market estimates of $560 million.
Eli Lily however tempered down its earnings forecast for 2021 to remain between $7.10 and $7.75 per share compared to its previous forecast of it being between $7.25 and $7.90. the company brought down its forecasts because of expected higher investments. However the sales and adjusted profit forecasts of the company were kept unchanged.
The company also reported a rise in net earnings to $2.12 billion, or $2.32 per share, for the fourth quarter ended December31 from $1.50 billion, or $1.64 per share, for the same period a year earlier.
Excluding items, the company earned $2.75 per share, beating estimates of $2.35 per share. Overall sales rose 21.7% to $7.44 billion.

Christopher J. Mitchell

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