Eli Lilly and Co.’s 4Q15 Business Segment Performance

Eli Lilly and Co.’s 4Q15 Earnings Showed Growth of ~5%

(Continued from Prior Part)

Performance by business segment

The overall business of Eli Lilly and Co. (LLY) is classified in two business segments: Human Pharmaceuticals and Animal Health. Over 80% of its revenues are contributed by the Human Pharmaceuticals segment.

Human Pharmaceuticals revenues

The Human Pharmaceuticals segment, which contributes ~84.9% of total revenues to Eli Lilly, reported revenues of $4,564 million for 4Q15, a ~1.7% increase as compared to 4Q14. The Human Pharmaceuticals segment reported an increase in revenues by 4% due to price and another 4% due to volume.

This was offset by a 6% negative impact of foreign exchange. The revenues were driven by increased sales of Humalog, Cialis, Strattera, Effient, Erbitux, and Trajenta, which were partially offset by lower sales of Alimta, Humulin, Cymbalta, and Zyprexa.

Pharmaceuticals segment revenues

For the US markets, the Pharmaceuticals segment revenues increased by 10% due to a higher price, and 4% due to higher volumes, making the overall pharmaceutical revenues increase by 14% in 4Q15. Similarly, for Japan’s markets, the Pharmaceuticals Segment revenues increased by 1% due to a higher price and 16% due to higher volumes.

However, they were impacted by an 8% negative impact of foreign exchange. These revenues were offset by lower sales volumes in emerging markets, as well as lower sales volumes and lower prices in the Europe–Canada markets during 4Q15.

Animal Health segment revenues

Eli Lilly’s (LLY) Animal Health segment operates through Elanco. Elanco contributed ~15.1% of total revenues to Lilly, reporting revenues of $811.7 million for 4Q15, a growth of 28% over 4Q14 revenues. This was mainly due to the inclusion of Novartis Animal Health, followed by the launch of new products in the Animal Health segment.

We will discuss the company’s key products in the coming articles. Investors can consider the iShares Russell 1000 Growth ETF (IWF), which holds ~0.8% of its total assets in Eli Lilly. IWF also holds ~1.2% of its total assets in Amgen (AMGN), ~1.0% of its total assets in Bristol-Myers Squibb (BMY), and ~0.9% of its total assets in AbbVie (ABBV). The iShares Core S&P 500 ETF (IVV) holds ~0.5% of its total assets in Eli Lilly.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Eli Lilly and Co.’s 4Q15 Earnings: An Overview

• Part 2 - Eli Lilly and Co.’s 4Q15 Changes in Growth Rate

• Part 4 - Eli Lilly and Co.’s 4Q15: Has Human Pharmaceutical Recovered?