Lilly's fourth-quarter profit surges, topping analysts' predictions

Back to TopCommentsE-mailPrintBookmark and Share

Profit at Eli Lilly and Co. surged 28 percent in the fourth quarter, edging above analysts’ expectations.

The Indianapolis-based drugmaker earned $1.2 billion in the three months ended Dec. 31, compared with $915 million in the same quarter a year ago.

Earnings per share totaled $1.05 for the quarter, compared with 91 cents a year ago. Excluding restructuring costs from Lilly’s ongoing layoffs, the company would have earned $1.11 per share in the most recent quarter.

On that basis, Wall Street analysts were expecting profit of $1.10 per share, according to a survey by Thomson Reuters.

Lilly’s revenue rose 4 percent in the quarter to $6.2 billion, also exceeding analysts’ predictions. Sales grew mainly from increased demand for Lilly’s drugs in foreign markets and because of increased prices in the United States.

“These results allowed us to deliver attractive earnings growth and a healthy dividend for our shareholders, while still investing in the research and development and business development activities that will enable us to bring the next generation of new medicines to patients," said Lilly CEO John Lechleiter, in a statement.

For all of 2010, Lilly’s revenue grew 6 percent to $23.1 billion and its profit rose 17 percent to $5.1 billion. Profit per share was $4.58.

But for 2011, Lilly predicts its profit will drop by about 10 percent, to a range of $3.92 to $4.07 per share. Lilly’s bestselling drug, Zyprexa, will face generic competition in the United States and Europe beginning in November. And already, another Lilly’s blockbuster, Gemzar, is losing sales to cheaper generic copies.

Gemzar sales fell 22 percent in the fourth quarter. Lilly’s best sales growth came from Cymbalta, which grew 19 percent in the quarter.


    It is almost has if Lilly has transformed itself into a company that doesn't necessarily make complex molecules, but brokers and markets them. Very clever. Good Lord knows we need Lilly for Indy to grow.

Post a comment to this story

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

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...