The global roll out of Covid-19 vaccines – and especially those in the United States, hit the demand and sale of the Covid-19 antibody therapies of Eli Lilly and Co. That forced the company to report profits for the first below market expectations while also forcing it to reduce the upper end of its forecast for adjusted earnings for the entire year of 2021.
Partly because of the complexities associated with administering the antibody treatments, the demand for the antibody drugs from Lilly and Regeneron has failed to take off in the United States.
And following the decision last month of the US government to stop the distribution of Lilly’s Covid-19 antibody drug, bamlanivimab, as a standalone treatment because of concerns about the new variants of the novel coronavirus being resistant to the drug hit the sales of the drug significantly.
A combination of bamlanivimab with another treatment, etesevimab, is now the focus of the drug maker.
“COVID-19 therapies are reducing in their need as the virus is being arrested by vaccines in the United States,” Lilly’s Chief Executive Officer David Ricks said in an interview to the media.
During the first quarter, of $810.1 millionwas earned byLilly from the sale of its Covid-19 drugs which were well below the estimates of experts and analysts of $985 million, according to Guggenheim. There was a drop of 4 per cent in the stocks of the company after the results were announced.
In comparison, in the fourth quarter of 2020, the revenue earning for the company was at $871.2 million from the sale of the drugs which include bamlanivimab as well as its combination with etesevimab.
The company now expects adjusted full-year earnings of $7.80 to $8 per share from its prior forecast of $7.75 to $8.40 per share.
The company also expects that the sale revenue for its Covi19 drugs will be in the range of $1 billion to $1.5 compared to its previous estimates of between $1 billion and $2 billion.
The earnings of the company was at $1.87 per share, excluding items, which was lower than estimates of $2.13 per share, according to IBES data from Refinitiv.
The company also reported a 7 per cent drop in its net earnings for the quarter ended March 31to $1.36 billion, or $1.49 per share.
(Adapted from Reuters.com)