There are always bright moments in your day. No matter how many other items of news cross your desk which show economies slowing down or people doing bad things, there is always something that can lift your spirits again. In this instance, we have the third quarter earnings figures out of Eli Lilly. This pharmaceutical manufacturer has been in the wars recently and its share price has reflected this uncertainty. But there is an interesting trend revealed in the latest report. As the manufacturer of Cialis, Lilly has been investing heavily in promoting its product. The figures so far in the current year show a 24% increase in sales around the world. So how much money does that represent? The answer is a total of $376. 6 million, of which $139. 8 million represents domestic sales in the US driven both by increased demand and a higher price ex-factory. With the fall in the value of the US dollar, overseas sales were more profitable. Let’s just pause there for a moment. The weekend pill is worth slightly more than $40 million per month to Lilly’s gross revenue. That’s a lot of pills at wholesale prices! Should we be surprised at the success of this product as against the brand leader (that little blue pill we’re not allowed to mention here)? Frankly, I don’t think so. Cialis has two major advantages. The first is the length of time men can deliver on the basis of a single tablet. The somewhat infamous nickname says it all. Whereas the other two competitors give four to six hours of performance, Cialis is the clear winner with thirty-six hours. However you try to spin the numbers, you cannot escape the clear superiority of Cialis. But the real innovation driving the growth of market share is the “new” once-daily version. This is “new” in a limited sense. It has been available in Europe for some time, but we are only just beginning to see the results of the sales in the US market following FDA approval. This format of the tablet uses a significantly lower dose on a once-daily schedule and “guarantees” success 24/7. So this is a really bright spot in Lilly’s report and, if this trend continues (up by one forth year-on-year), it will do much to maintain Lilly’s overall profitability and enable it to maintain its schedule of new drugs in the development pipeline. Shame about the rest of the stockmarket.

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