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Increased Demand Amid Coronavirus Pandemic Pushed Eli Lilly To Beat Estimates


04/23/2020


Increased Demand Amid Coronavirus Pandemic Pushed Eli Lilly To Beat Estimates
While the coronavirus pandemic resulting in massive lockdowns all across the world and most businesses virtually closing down, pharma companies are the ones who seem to be benefiting from the current situation.
As people stock up medicines amid the coronavirus pandemic, pharma companies have seen a surge in revenues and profits.
 
Drug maker Eli Lilly and Co beat quarterly profit estimates for the latest quarter riding on such a wave as there was increased demand for some of its drugs such as its diabetes treatment Trulicity as people rushed to stock up such crucial medicines amid the coronaviruds pandemic. The company also raised its upper limit forecast for its 2020 earnings on Thursday.
 
Following the reporting, there was a 2.7 per cent spike in the shares of the company during early trading on Thursday to $161 a share. 
 
The company said that there had been an increase of almost $250 million in the revenues generated by it during the first quarter primarily because of the lockdowns and the stay-at-home orders issued by many governments which has induced people to buy and stock up on medicines such as the insulin products of the company as well, in addition to its diabetes drug Trulicity.
 
However, the process and efforts of new drug development of drug makers and pharma companies have taken a beating because of the coronavirus pandemic as healthcare providers are currently now completely focused on the treatment of patients infected by the novel coronavirus. 
 
The company also announced a 10 per cent increase in its top line forecast for the full-year adjusted profit per share which it said would come in between $6.70 and $6.90 per share. The company cited its anticipation of a further growth in demand for its newer drugs. The company also said that it expects to restart clinical trials for its new medicines in the pipeline by the second half of the current year.
 
The company also said that 40 per cent more revenues were generated from its top-selling drug Trulicity at $1.23 billion during the latest completed quarter. That helped the company to register an overall growth of 15 per cent in its revenues at $5.86 billion compared to the $5.51 billion in the quarter that was being expected by analysts at Wall Street.
 
The company also beat analysts’ estimates for earnings with reported earnings of $1.75 per share which was well above the $1.48 per share level – the average expectation of analysts, excluding items, according to IBES data from Refinitiv.
 
However the company noted a year on year fall in its net income which came in at $1.46 billion, or $1.60 per share, during the latest completed quarter compared to the net earnings of $4.24 billion, or $4.31 per share that was reported by the company about a year ago in the same period. however during that quarter last year, the company had gained from a $3.68 billion spin-off of animal health unit Elanco.
 
(Source:www.nasdaq.com)