IBJNews

Lilly profit falls, but forecast rises after second quarter

Back to TopCommentsE-mailPrintBookmark and Share

Second-quarter profit fell at Eli Lilly and Co., but the drugmaker beat the estimates of Wall Street analysts by a penny per share and raised its full-year profit forecast as much as a dime per share.

Indianapolis-based Lilly earned $1.2 billion, or $1.07 per share, in the three months ended June 30, a decline of 11 percent compared with the same quarter a year ago.

Excluding restructuring charges related to Lilly’s ongoing layoffs of 5,500 workers, the company would have earned $1.3 billion, or $1.18 per share, which represents a 4 percent decline in profit from the same quarter last year, when all special charges are excluded.

On that basis, analysts were expecting profit of $1.17 per share, according to a survey by Thomson Reuters.

Lilly raised its 2011 profit forecast to a range of $4.25 per share to $4.35 per share, excluding special charges. In April, Lilly predicted it would earn $4.15 per share to $4.30 per share for the year.

“Our financial results reflect the solid performance of many of our marketed products, as well as important investments we are making to expand our commercial opportunities and deliver the next wave of potential new medicines to patients,” said Lilly CEO John C. Lechleiter in a prepared statement. “Key Lilly products continue to perform well, including Cymbalta, Cialis and our insulins. Exchange rates have also contributed to favorable sales comparisons.”

Revenue for the quarter totaled $6.25 billion, up 9 percent from the same quarter a year ago. Analysts were only expecting $6 billion in revenue.

Lilly achieved double-digit sales growth for seven of its eight best-selling drugs, including 18 percent growth for its insulin Humilin, 16 percent for another insulin Humalog and 16 percent growth for its anti-depressant Cymbalta.

Sales of Lilly’s cancer drug Gemzar fell 62 percent, after generic copies of the drug started to hit U.S. markets since November. Lilly also faces generic competition for its bestseller Zyprexa when its U.S. and European patents expire in October.

Looming patent losses have weighed on Lilly shares for nearly three years now. But so far this year, the company’s stock price has risen 9 percent, closing Wednesday at $38.17. The S&P 500 has risen only 5 percent so far this year.

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 had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

ADVERTISEMENT