Eli Lilly Q4 earnings down 3.6%
Global pharmaceutical company Eli Lilly reported lower fourth-quarter earnings of 3.6% as the drug maker recorded weaker revenue as the sales of its antipsyschotic drug Zyprexa continued to drive lower revenue.
The results beat Wall Street expectations and the pharmaceutical company raised its forecast for 2013. The earnings per share on a non-GAAP basis, declined 2% to $0.85 from $0.87, yet topped market expectations of $0.78 a share.
The net earnings also dipped 2% to $945 million. Revenue also dipped 1% to $5.96 billion but came in better than Wall Street projections of a drop of 3.9%. In the U.S, total revenues also fell 2% and fell 1% outside the U.S.
Besides, Zyprexa revenue also dipped 49% while the revenue from depression treatment Cymbalta surged 20%. The gross margin as a percent of total revenue improved 0.9 percentage points to 79.0 percent for the fourth quarter. The volumes also dipped 3% due to the loss of patent exclusivity for Zyprexa in most major markets.
The cost of sales dropped 6% and operates expenses declined 1%. Eli Lilly currently expects non-GAAP EPS in the range of $3.82 to $3.97 versus $3.75 to $3.90 projected earlier. The revenue is still expected between $22.6 and $23.4 billion.
On a reported basis, Eli Lilly now forecasts EPS of $4.10 to $4.25, up from prior guidance of $4.03 to $4.18 projected earlier.
The increased outlook reflects the estimated benefit from the delayed enactment of the American Taxpayer Relief Act of 2012, the company said. Lilly said it expects the overall revenue growth for 2013, driven by products including Humalog, Humulin, Cialis, Forteo, Cymbalta, outside the U.S. and other products, including those in animal health.
Besides, it also expects significant revenue growth in Japan and the emerging markets, particularly in China. The company has already spent $400 million of the $1.5 billion stock buyback effort it unveiled last month.
Eli Lilly and Company is a global pharmaceutical company. Its global headquarters is located at Indianapolis, Indiana in the U.S. The company also has offices in Puerto Rico and 17 other countries.