By Tess Stynes 
 

Eli Lilly & Co. (LLY) said it plans to cease operations at and pursue the sale of one of its three plants in Puerto Rico, where the drug maker says utilization has been hurt by patent expirations on medicines made there.

Indianapolis-based Lilly expects to post a fourth-quarter charge of about $170 million related to the move.

The company said it expects the plant in Guayama to continue operating until the end of next year. The company said the plant's 100 or so employees will be offered jobs at another facility in Puerto Rico.

Lilly said it plans to continue investing in its two remaining Puerto Rican plants.

In July, Lilly reported its second-quarter profit slid 39% as patent expirations for some of its bigger-selling drugs dragged down revenue and volume.

Earlier this year, Eli Lilly froze most of its employees' pay this year as it faces increased competition from generic-drug makers, after it lost U.S. patent protection for best-selling antidepressant Cymbalta and osteoporosis treatment Evista.

The company plans to release third-quarter financial results Oct. 23.

Write to Tess Stynes at tess.stynes@wsj.com

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