Eli Lilly has posted a 6% rise in net income for the third quarter to $926.3 million or $0.85 per share, ahead of analyst forecasts, while revenues were up 19% driven by Cymbalta and Cialis.
Sales reached $4.59 billion, fuelled by strong sales of the company’s depression drug Cymbalta (duloxetine), which increased 47% to $513.2 million, boosted by an additional approval for the treatment of generalised anxiety disorder. Another welcome addition to Lilly’s coffers was the contribution of the erectile dysfunction drug Cialis (tadalafil) which generated sales of $311.4 million, a 27% increase. Lilly gained all of the revenues from the drug when it acquired Icos Corp in January.
However Lilly’s best-selling drug continues to be the schizophrenia drug Zyprexa (olanzapine), which had sales of $1.17 billion, up 8% and helped by a price increase, despite declining demand in the USA. Of the firm’s other drugs, the diabetes drug Byetta (exenatide) climbed 30% to $164.8 million, while sales of the fast-acting insulin Humalog rose 12% to $362.5 million. Gemzar (gemcitabine) rose 11% to $394.4 million and another cancer drug Alimta (pemetrexed) increased 37% to $215.0 million.
Licensing deal with MacroGenics for teplizumab
As well as the financials, Lilly also announced a deal with MacroGenics to develop and commercialise teplizumab, a humanised anti-CD3 monoclonal antibody which is currently in a Phase II/III clinical trial for patients with onset type 1 diabetes.
Under the terms of the deal, Lilly will make an initial payment of $41 million and $3 million in other committed funds, while MacroGenics could also receive up to $200 million in development milestones and $250 million in sales milestones and royalties. The US drugs major will also make an equity investment of up to $10 million in MacroGenics' next private financing round or initial public offering, and has the right to pursue additional indications for teplizumab and other molecules that are co-developed, which could bring in an additional $600 million into MacroGenic’s coffers.
The deal is expected to go into effect in the fourth quarter and Lilly expects to record a charge of $0.03 per share in the fourth quarter related to the agreement.