By Chelsey Dulaney
Eli Lilly & Co. (LLY) logged better-than-expected profit and
revenue in the latest quarter, boosted by higher U.S. prices and
its acquisition of Novartis AG's (NVS, NOVN.VX) animal health
unit.
The upbeat results came despite the lingering effect of patent
expirations and foreign-exchange pressures.
Lilly, like other pharmaceutical companies, is working to
counter a wave of patent expirations, and resulting sales
pressures, by broadening its research and business models.
In March, Lilly agreed to form one of the broadest
collaborations to date between a large Western drug maker and a
Chinese biotechnology company, paying $56 million to startup
Innovent Biologics Inc. to co-develop at least three experimental
cancer drugs.
Lilly is looking to boost its business by relying on treatments
for diabetes and cancer patients, as well as medical products for
animals.
It has also reached pacts with Merck Co. (MRK) and Bristol-Myers
Squibb Co. (BMY) to collaborate on trials for immunotherapy
drugs.
In the latest quarter, animal health sales grew 42% to $749.8
million.
Meanwhile, sales of Cymbalta fell 40% to $287 million, and
Evista sales plunged 55% to $66.8 million due to patent
expirations.
Overall, Lilly posted earnings of $529.5 million, or 50 cents a
share, down from $727.9 million, or 68 cents a share, in the
prior-year period.
Excluding items such as restructuring and asset-impairment
charges, earnings were 87 cents a share, up from 74 cents a year
earlier.
Revenue edged down 1% to $4.64 billion.
Analysts had projected a per-share profit of 77 cents and
revenue of $4.62 billion.
For the year, the company lowered its earnings forecast to $2.21
to $2.31 a share from $2.40 to $2.50 a share. Lilly reaffirmed its
profit forecast, excluding special items.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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