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New Drug Sales Boost Eli Lilly's Profit
January 29, 2004
INDIANAPOLIS (AP)--Eli Lilly and Co.'s fourth-quarter
profit edged up 1 percent as three new drugs
fueled strong sales growth that was offset by
higher marketing and manufacturing costs to
support the new medications, the company said
Thursday.
Lilly reported net income of $747.2 million
for the October-December period, or 69 cents
per share. That compared with $736.3 million,
or 68 cents a share, in the year-ago quarter.
Sales increased 17 percent to $3.47 billion
from $2.96 billion.
Excluding a one-time gain from the sale of
patents and offsetting one-time expenses, earnings
per share were 67 cents, matching the expectations
of analysts surveyed by Thomson First Call.
Lilly shares were up 42 cents at $67.34 in
Thursday trading on the New York Stock Exchange.
For all of 2003, Lilly reported net income
of $2.56 billion, or $2.37 per share, down from
$2.71 billion and $2.50 per share in 2002. Sales
increased 14 percent to $12.58 billion from
$11.08 billion.
Indianapolis-based Lilly reported 16 percent
sales growth in the quarter for its top-seller,
Zyprexa. The antipsychotic drug, introduced
in 1996 and now undergoing a patent challenge
from generic drug makers in a trial before a
federal judge in Indianapolis, posted $1.15
billion in sales. Lilly's diabetes products,
Humulin and Humalog, together recorded 18 percent
growth.
The new drugs--Strattera, Cialis
and Forteo--``performed extremely well in their
first year on the market with combined sales
in excess of $500 million,'' said Sidney Taurel,
Lilly's chairman, president and chief executive.
Strattera, a nonstimulant medication introduced
last year to treat attention deficit-hyperactivity
disorder, generated $132.6 million in fourth-quarter
sales and $370 million for the year. Cialis,
an erectile dysfunction drug introduced in Europe
early last year and approved for U.S. use in
November, recorded $94.2 million in sales for
the quarter and $203 million for the year.
In a conference call with analysts, Lilly officials
said the company had recently won approval to
market Strattera in Australia, Argentina and
Mexico.
And officials said early U.S. sales of Cialis
could get a boost by an ad set to air during
Sunday's Super Bowl that differs from spots
for rivals Viagra
and Levitra in that it will state what condition
the medication treats. Also, the Cialis spot
will tout what Lilly and its joint-venture partner
in the drug, Bothell, Wash.-based Icos Corp.,
tout as a major advantage over the two competing
drugs: Cialis can last for up to 36 hours, compared
with roughly four hours for Viagra and Levitra.
Forteo, a new osteoporosis medication, posted
sales of $25.9 million for the quarter and $65
million for the year.
The company said its sales growth was offset
by costs from quality-control measures and capacity
increases at manufacturing plants as well as
unfavorable effects from foreign currency exchange
rates. Also, Lilly's marketing and administrative
expenses grew 23 percent to $1.1 billion in
the quarter, largely from marketing to support
the three new drugs and four others expected
to win approval this year.
Lilly said its earnings forecasts for the first
quarter and full year are unchanged at the expectation
of a profit of 65 cents to 67 cents per share
for the quarter and $2.80 to $2.85 for the year.
___
On the Net:
Eli Lilly and Co. www.lilly.com
AP-NY-01-29-04 1209EST
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source:-http://www.ajc.com
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