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. why oh why does this state continue to elect these people....do you wonder how much was graft out of the 3.8 billion?

  2. i too think this is a great idea. I think the vision and need is there as well. But also agree with Wendy that there may be better location in our city to fulfill this vision and help grow the sports of hockey and figure skating in Indy. Also to help further develop other parts of the city that seem often forgotten. Any of the other 6 townships out side of the three northernmost could benefit greatly from a facility and a vision like this. For a vision that sounds philanthropic, the location is appears more about the money. Would really like to see it elsewhere, but still wish the development the best of luck, as we can always use more ice in the city. As for the Ice growth when they return, if schedules can be coordinated with the Fuel, what could be better than to have high level hockey available to go see every weekend of the season? Good luck with the development and the return of the Ice.

  3. How many parking spaces do they have at Ironworks? Will residents have reserved spaces or will they have to troll for a space among the people that are there at Ruth Chris & Sangiovese?

  4. You do not get speeding ticket first time you speed and this is not first time Mr.Page has speed. One act should not define a man and this one act won't. He got off with a slap on the wrist. I agree with judge no person was injured by his actions. The state was robbed of money by paying too much rent for a building and that money could have been used for social services. The Page family maybe "generous" with their money but for most part all of it is dirty money that he obtained for sources that are not on the upright. Page is the kind of lawyer that gives lawyers a bad name. He paid off this judge like he has many other tine and walked away. Does he still have his license. I believe so. Hire him to get you confiscated drug money back. He will. It will cost you.

  5. I remain amazed at the level of expertise of the average Internet Television Executive. Obviously they have all the answers and know the business inside and out.

ADVERTISEMENT