Eli Lilly reported Tuesday that first-quarter revenue from prescription drugs climbed 11 percent year-over-year, led by growth from new products. The company's overall sales in the three-month period increased 9 percent to $5.7 billion, topping analyst expectations of $5.5 billion, as net income reached $1.2 billion, up from a loss of $110.8 million in the prior-year quarter.  

CEO David Ricks noted that the results were "fuelled by revenue growth of new products and continued productivity gains that together resulted in robust earnings growth and an improved financial outlook for the year." For 2018, Eli Lilly indicated that sales are now forecast to be between $23.7 billion and $24.2 billion, lifted from an earlier estimate of $23 billion to $23.5 billion.  

The company explained that the increased guidance "is due to lower anticipated rebates and discounts in the US as a result of lower expected Medicaid utilisation and favourable payer mix for several products, as well as the impact of foreign exchange rates." In addition, annual earnings per share are now seen in the range of $5.10 to $5.20, up from prior guidance of $4.81 to $4.91.  

In the quarter, sales of Humalog rose 12 percent to $791.7 million, topping analyst forecasts of $680 million, while revenue from Trulicity surged 82 percent to $678.3 million, besting expectations of $614 million. Further, sales of Alimta increased 2 percent to $499.6 million, coming in ahead of estimates.

Meanwhile, revenue from Jardiance more than doubled to $151 million, ahead of forecasts of $149 million, with sales of Taltz jumping 52 percent year-over-year to $146.5 million, but missing estimates of $196.8 million. The company noted that US revenue for the drug, which is used to treat plaque psoriasis and active psoriatic arthritis, was $111.2 million, dropping $31.3 million compared with the fourth quarter of 2017. Eli Lilly explained that the decline was driven by lower volume due to specialty pharmacy buying patterns.

Additionally, Eli Lilly recorded $32.2 million in sales for rheumatoid arthritis therapy Olumiant, which the drugmaker attributed to strong uptake in Germany. The JAK inhibitor has been approved in several markets including Europe and Japan. Earlier this week, an FDA advisory panel recommended clearance of the lower 2-mg dose of Olumiant, but voted against approval of a 4-mg dose (for related analysis, see ViewPoints: FDA tentatively clears the way for JAK inhibitors- except for Eli Lilly's).

Commenting on the agency's decision, Ricks acknowledged "the 4-mg dose is an important dose," adding "when we look at our performance outside of the US…there is more 4-mg use than 2-mg use…so it is an important part of the launch strategy."

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