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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