IBJNews

Lilly's profit drops 4 percent, but beats analysts' estimates

Back to TopCommentsE-mailPrintBookmark and Share

Price increases and sales gains helped Eli Lilly and Co. offset declining revenue from its former blockbuster Zyprexa in the fourth quarter, allowing the company to beat analysts' expectations and raise its 2013 profit forecast.

The Indianapolis-based drugmaker saw profit fall 4 percent, to $827 million, in the quarter, compared with the same period a year ago. That profit translated to earnings of 74 cents per share.

Excluding $204 million in charges for ending the development program of the pancreatic enzyme replacement drug liprotomase and further reducing employment, Lilly would have earned 85 cents per share in the quarter.

On that basis, analysts surveyed by Thomson Reuters were expecting earnings of 78 cents per share.

Lilly shares rose 3.6 percent by early afternoon, to $54.56 each.

Lilly’s fourth-quarter revenue declined 1 percent from a year ago, to just less than $6 billion. Analysts were expecting revenue of $5.8 billion.

“Lilly delivered solid financial results in the fourth quarter of 2012, as we successfully offset a large part of the revenue decline from the Zyprexa patent expiration with growth in other products such as Cymbalta, Forteo, Alimta, Effient and our animal health portfolio," Lilly CEO John Lechleiter said in a prepared statement.

Lilly boosted its 2013 profit forecast by 7 cents per share because Congress delayed the expiration of the research-and-development tax credit by one quarter. The company now expects to earn in the range of $4.10 to $4.25 per share this year. That would represent a gain of 12 percent to 16 percent over 2012.

For all of 2012, Lilly posted profit of $4.1 billion, or $3.66 per share, down 6 percent from 2011. Excluding special charges, Lilly earned $3.39 for the year,  exceeding the predictions of analysts by 6 cents.

Lilly’s 2012 revenue totaled $22.6 billion, a 7-percent decline from 2011. Analysts had been expecting full-year revenue of $22.4 billion.

Lilly’s U.S. and European patents on the antipsychotic drug Zypexa expired in the fall of 2011. That allowed cheaper generic versions of the drug to sap two-thirds of the drug’s $5 billion in annual sales.

That $3.3 billion hole in Lilly’s income statement has been mostly but not entirely filled by rising sales of other products. Sales of the antidepressant Cymbalta rose 20 percent last year to $5 billion. Sales of the osteoporosis drug Forteo and Elanco animal health products each rose 21 percent, to  $1.2 billion and $2 billion, respectively.

Lilly’s shares have risen 40 percent over the past 12 months, closing at $52.64 on Monday.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. A Tilted Kilt at a water park themed hotel? Who planned that one? I guess the Dad's need something to do while the kids are on the water slides.

  2. Don't come down on the fair for offering drinks. This is a craft and certainly one that belongs in agriculture due to ingredients. And for those worrying about how much you can drink. I'm sure it's more to do with liability than anything else. They don't want people suing for being over served. If you want a buzz, do a little pre-drinking before you go.

  3. I don't drink but go into this "controlled area" so my friend can drink. They have their 3 drink limit and then I give my friend my 3 drink limit. How is the fair going to control this very likely situation????

  4. I feel the conditions of the alcohol sales are a bit heavy handed, but you need to realize this is the first year in quite some time that beer & wine will be sold at the fair. They're starting off slowly to get a gauge on how it will perform this year - I would assume if everything goes fine that they relax some of the limits in the next year or couple of years. That said, I think requiring the consumption of alcohol to only occur in the beer tent is a bit much. That is going to be an awkward situation for those with minors - "Honey, I'm getting a beer... Ok, sure go ahead... Alright see you in just a min- half an hour."

  5. This might be an effort on the part of the State Fair Board to manage the risk until they get a better feel for it. However, the blanket notion that alcohol should not be served at "family oriented" events is perhaps an oversimplification. and not too realistic. For 15 years, I was a volunteer at the Indianapolis Air Show, which was as family oriented an event as it gets. We sold beer donated by Monarch Beverage Company and served by licensed and trained employees of United Package Liquors who were unpaid volunteers. And where did that money go? To central Indiana children's charities, including Riley Hospital for Children! It's all about managing the risk.

ADVERTISEMENT