IBJNews

Lilly to book $790M Amylin payment in third quarter

Back to TopCommentsE-mailPrintBookmark and Share

Eli Lilly and Co. will book about $790 million in pretax income in the third quarter thanks to an early payment from former drug development partner Amylin Pharmaceuticals.

Lilly, based in Indianapolis, said Thursday that Amylin made a payment to satisfy its revenue-sharing obligation over the diabetes treatment exenatide, which goes by the brand names Byetta and Bydureon. The payment came after Lilly competitor Bristol-Myers Squibb Co. finished its $5 billion acquisition of Amylin.

Lilly also has received a pretax payment of about $425 million from Amylin, but it won't recognize that on its income statement until next year because the company is still transferring Byetta and Bydureon rights to Amylin, a spokesman said.

Amylin and Lilly said last year they were ending their long-standing collaboration to develop diabetes drugs, and they were resolving a lawsuit Amylin had filed over Lilly's collaboration with German drugmaker Boehringer Ingelheim.

Lilly is the world's 11th largest drugmaker by annual revenue, according to 2011 rankings from drug data firm IMS Health.

The Amylin payments will help as it faces a big revenue slide due to the loss of patents protecting several key drugs over the next few years.

Last year, Lilly earned $4.35 billion, or $3.90 per share, on $24.29 billion in revenue. The company expects to record annual net income of at least $3 billion and revenue of at least $20 billion through 2014.

For 2012, Lilly said Thursday it still expects adjusted earnings to range between $3.30 and $3.40 per share on revenue of between $21.8 billion and $22.8 billion.

Analysts forecast, on average, earnings of $3.38 per share on $22.67 billion in revenue, according to FactSet.

Lilly shares fell 6 cents, to $42.79 each, in afternoon trading, while broader trading indexes also dripped slightly. Its shares have traded in a 52-week range of $33.75 to $44.67 per share.

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. I never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

  2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

  3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

  4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............

ADVERTISEMENT