Eli Lilly Sees Generic Competition for Cymbalta (x6)

As expected, the Food and Drug Administration has approved the first generic versions of Eli Lilly's (NYSE: LLY  ) depression drug Cymbalta.

Six versions in fact.

On Wednesday, Aurobindo Pharma, Dr. Reddy's Laboratories (NYSE: RDY  ) , Lupin, Sun Pharmaceuticals, Teva Pharmaceuticals (NYSE: TEVA  ) , and Torrent Pharmaceuticals all got the FDA's green light to sell the drug known generically as duloxetine.

Given the large number of generic versions, the companies are going to have to compete on price, leading to limited profits for the generic-drug makers and a sharp drop in sales of the branded product.

U.S. sales of Cymbalta were $1.1 billion in the third quarter. Despite the expiration coming toward the end of the quarter, the pharma expects U.S. sales will drop to just $500 million this quarter. Since the expiration of the U.S. patent exclusivity was widely known, wholesalers and retail pharmacies have likely reduced inventories in anticipation of the launches of the generic versions. Eli Lilly's estimated sales also includes expected returns of the product.

While the drop in sales of Eli Lilly's top-selling drug will affect revenue and profits, the exact date for the loss of exclusivity has been known for years and thus shouldn't affect the company's valuation at this point.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2762109, ~/Articles/ArticleHandler.aspx, 11/24/2014 10:35:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement