By Michael Calia
Eli Lilly and Co. said Friday foreign-exchange pressures weighed
on sales in the most recent quarter as the pharmaceutical company
continued to suffer the impact of patent expirations on some of its
key drugs.
The company, citing the stronger U.S. dollar, adjusted its
outlook for the year, including reducing its revenue estimate to a
range of $19.5 billion to $20 billion from its previous guidance of
$20.3 billion to $20.8 billion.
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. Two
weeks ago, the company reached separate pacts with Merck Co. Inc.
and Bristol-Myers Squibb Co. to collaborate on trials for
immunotherapy drugs.
Lilly, which issued an outlook for this year earlier this month
that fell below analysts' views, is looking to boost its business
by relying on treatments for diabetes and cancer patients, as well
as medical products for animals.
"Despite the loss of significant revenue for Cymbalta and Evista
following the expiration of our U.S. patents, we saw strong
performance from many other products," Chief Executive John C.
Lechleiter said in a news release. "At the same time, we made
excellent progress with our innovation-based strategy, and we
continue to advance our pipeline."
Sales of Cymbalta fell 58% to $367.3 million, and Evista sales
dropped 74% to $72.1 million.
Overall, Lilly posted earnings of $428.5 million, or 40 cents a
share, down from $727.5 million, or 67 cents a share, in the
prior-year period. Excluding items such as restructuring and
asset-impairment charges, earnings were 75 cents a share, up from
74 cents a year earlier.
Revenue fell 12% to $5.12 billion.
Analysts had projected a per-share profit of 73 cents and
revenue of $5.2 billion.
Write to Michael Calia at michael.calia@wsj.com
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