Eli Lilly cuts annual profit view as lower insulin prices hit Q2 sales
2022.08.04 15:26
Budrigannews.com -Eli Lilly and Co on Thursday cut its full-year profit forecast for the second time after quarterly results missed estimates due to lower prices of insulin and competition for its cancer drug, sending the drugmaker’s shares down 6% before the bell.
U.S. drugmakers have been pulled up by lawmakers in recent months over rising costs of insulin. The U.S. House of Representatives in March passed a bill capping monthly out-of-pocket insulin costs for those with health insurance at $35.
Lilly, which cut prices of insulin Lispro products by 40% from January 1, reported a 26% fall in sales of its popular insulin products Lispro and Humalog to $447.1 million. (https://reut.rs/3oUvppy)
Revenue from its cancer drug Alimta also slumped 63% to $227.7 million due to the entry of copycat drugs.
Lilly cut its 2022 adjusted profit forecast to $7.90 to $8.05 per share from $8.15 to $8.30 per share announced in April.
The company’s net income fell to $952.5 million, or $1.05 per share, in the second quarter ended June 30, from $1.39 billion, or $1.53 per share, a year earlier.
Excluding one-off items, Lilly reported a profit of $1.25 per share, much lower than the average analyst estimate of $1.69 per share, as per Refinitiv IBES data.
Its revenue of $6.49 billion also missed the consensus estimate of $6.84 billion.
