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Lilly forecasts sales, profit drop in face of rival generic drugs

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Eli Lilly and Co., the leading U.S. maker of diabetes products, on Tuesday forecast a drop in 2014 profit and reduced its sales outlook because of generic competition to the its Cymbalta antidepressant and Evista drug for osteoporosis.

Sales will be between $19.2 billion and $19.8 billion, while profit will range from $2.77 to $2.85 a share, the Indianapolis-based company said in a prepared statement.

Analysts had predicted $19.6 billion in sales and profit of $2.78 a share, based on the average of 17 estimates compiled by Bloomberg.

Lilly said in October that meeting its projection of at least $20 billion in sales in 2014 would be difficult. The company lost patent protection on Cymbalta, its best-selling drug, last month, leading to expectations that revenue will decline to its lowest level since 2007.

“We expect 2014 to be the most financially challenging year of Lilly’s current period of patent expirations,” Chief Financial Officer Derica Rice said in the statement.

The company plans to increase sales starting next year as it brings new products to market. Five Lilly drugs are being reviewed by regulators, and eight more are in the final of three stages of testing required before U.S. approval, according to the company’s web site.

Cymbalta generated $4.99 billion in 2012. Its 2014 sales are projected by analysts to fall to $1.43 billion. Revenue from Evista is expected to drop to $498.6 million this year from an estimated $997.1 million in 2013, according to analysts.

Lilly shares gained less than 1 percent, to $51.53 each, on Monday.

The shares had increased 1 percent in the the past 12 months through Monday, compared with a rise of 36 percent in the Standard & Poor’s Pharmaceuticals Index.

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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