Alimta treatment for malignant pleural mesothelioma
The company’s Alimta treatment for malignant pleural mesothelioma saw sales of $73.1 million, up from $40 million in the third quarter, while sales of depression treatment Cymbalta were $61.3 million, compared with $32.5 million in the third quarter, mainly due to initial wholesaler stocking. Fourth-quarter sales of Forteo, a treatment for severe osteoporosis, were $74.3 million, up from $58.1 million in the third quarter.
Eli Lilly Reports 4Q Loss on Tax Expense
01.26.2005, 07:55 AM
Pharmaceutical firm Eli Lilly & Co. said Wednesday reported break-even earnings per share after recording an additional tax expense for repatriating overseas profits.
The company posted a quarterly loss of $2.4 million, or break-even per share, compared with a profit $747.2 million, or 69 cents, in the year-ago period. Total sales for the period were $3.64 billion, an increase of 5 percent from $3.47 billion a year earlier, driven by greater demand for the company’s newer drugs. Eli Lilly said selling prices and exchange rates increased sales by 2 percent and 3 percent, respectively.
The company recorded a tax expense of $465 million on the expected repatriation to the United States of $8 billion of eligible overseas earnings under a 2004 law that allows companies to return overseas profits to the U.S. at a reduced tax rate. The additional tax expense reduced earnings by 43 cents per share. The company also recorded charges for restructuring and asset impairments, as well as acquired research and development expenses, that reduced earnings by 32 cents per share. Excluding one-time items, Eli Lilly’s adjusted earnings were $814.3 million, or 75 cents per share.
Eli Lilly’s results, excluding items, came in ahead of the mean estimate of 74 cents per share on revenue of $3.58 billion from a survey of analysts by Thomson First Call.
Sales of drugs launched during 2004 were the main driver for Eli Lilly sales in the fourth quarter. The company’s Alimta treatment for malignant pleural mesothelioma saw sales of $73.1 million, up from $40 million in the third quarter, while sales of depression treatment Cymbalta were $61.3 million, compared with $32.5 million in the third quarter, mainly due to initial wholesaler stocking. Fourth-quarter sales of Forteo, a treatment for severe osteoporosis, were $74.3 million, up from $58.1 million in the third quarter.
Sales of Cialis, a treatment for erectile dysfunction marketed by the company’s Lilly ICOS LLC venture, totaled $152.7 million, down slightly from $154.1 million in the third quarter. Of the latest total, $34 million those sales were reported in Eli Lilly revenue.
Among older drugs, sales of the anti-psychotic medication Zyprexas fell 5 percent in the quarter, as sales in the U.S. dropped 19 percent to $547.9 million, as demand declined due to continued competitive pressures.
For the year, Eli Lilly earned $1.81 billion, or $1.66 per share, down from $2.56 billion, or $2.37 per share, in 2003. Yearly sales rose 10 percent to $13.86 billion, the company said. Excluding certain items, net income was $3.07 billion, or $2.82 per share.
Analysts had expected the company to earn $2.81 per share on sales of $13.79 billion.
Looking forward, Eli Lilly pegged its first-quarter profit at 65 cents to 67 cents per share, up from an adjusted 64 cents per share a year ago. Excluding incremental equity compensation expense, earnings per share will be 71 to 73 cents per share, up from 70 cents a year ago.
That compares with current analyst expectations for quarterly income of 73 cents per share.