Eli Lilly and Company (NYSE:LLY) Q1 2019 Earnings Conference Call Transcript

Apr 30, 2019 • 09:00 am ET


Eli Lilly and Company (NYSE:LLY) Q1 2019 Earnings Conference Call Transcript


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Welcome to the Q1 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. (Operator Instructions). As a reminder, this conference is being recorded.

I would now like to turn the conference over to our VP of Investor Relations, Kevin Hern. Please go ahead.

Kevin Hern

Thank you. Good morning, thank you for joining us for Eli Lilly and Company's Q1 2019 earnings call. I'm Kevin Hern, Vice President of Investor Relations. Joining me on today's call are Dave Ricks, Lilly's Chairman and CEO; Josh Smiley, our Chief Financial Officer; Dr. Dan Skovronsky, President of Lilly Research Laboratories; Christi Shaw, President of Lilly Bio Medicines; Anne White, President of Lilly Oncology; and Enrique Conterno, President of Lilly Diabetes and Lilly USA. We're also joined by Kim Macko and Mike Czapar of the Investor Relations team.

During this conference call, we anticipate making projections and forward-looking statements based on our current expectations. Our actual results could differ materially due to a number of factors, including those listed on slide 3, and those outlined in our latest forms 10-K and 10-Q filed with the Securities and Exchange Commission. The information we provide about our products and pipeline is for the benefit of the investment community. It is not intended to be promotional and is not sufficient for prescribing decisions.

As we transition to our prepared remarks, a reminder that our commentary will focus on non-GAAP financial measures, which exclude the financial contribution from Elanco during the first quarters of both 2018 and 2019 and present earnings per share, as though the full disposition via the exchange offer was complete on January 1, 2018. We believe this view provides insights into the drivers of our underlying business performance as a dedicated pharmaceutical Company and provides for cleaner comparisons to future and prior periods.

Now I'll turn the call over to Dave for a summary of our progress in Q1.

David A. Ricks

Thanks Kevin. The Company's focus in 2019 is to execute on a broad and exciting range of new products and indication launches. To build and accelerate our pipeline, and continue to improve the focus and competitiveness of our Company. We are pleased with the progress on these objectives in Q1 2019.

First quarter revenue grew 5% in constant currency, despite a significant decline in US Cialis revenue, due to the recent loss of exclusivity. We made significant investments in key commercial and late-stage pipeline products and delivered non-GAAP EPS of 2%, putting us on track to meet our full year financial guidance.

Our key growth products, which all launched since 2014 contributed meaningfully to our performance and account for 39% of our revenue. While still relatively early in their product lifecycles, these products continue to drive growth led by Trulicity, Taltz, Verzenio, and in collaboration with Boehringer Ingelheim, Jardiance and Basaglar.

Total volume growth across the entire portfolio was 7%, and excluding Cialis, was nearly 13%. US Diabetes contributed