Eli Lilly cut its annual earnings outlook for the second time, after it missed market estimates by a large margin in its second-quarter results, hit by lower insulin prices.
It is recalled that the US House of Representatives approved in March a bill that limits the monthly participation for insulin for those with health insurance to $35.
So Lilly, which cut the prices of its insulin products by 40% since Jan. 1, reported a 26% drop in sales of the popular Lispro and Humalog to $447.1 million.
Meanwhile, revenue from its cancer drug Alimta fell 63% to $227.7 million due to the introduction of generics.
Against that backdrop, Lilly cut its 2022 adjusted earnings forecast to $7.90 to $8.05 a share from $8.15 to $8.30 in April.
The company’s net income fell to $952.5 million, or $1.05 per share, in the second quarter, from $1.39 billion, or $1.53 per share, a year earlier.
Excluding one-time items, Lilly reported earnings of $1.25 per share, well below analysts’ average estimate of $1.69. per share, according to data from Refinitiv IBES.
Finally, the $6.49 billion in revenue it reported also missed the average estimate of $6.84 billion.
The company’s stock is moving with significant losses of 2.75% in the wake of the numbers it presented.
Source: Capital
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