Fittest loser
Article updated: 1/4/2013 10:43 AM

Eli Lilly 2013 profit forecast tops expectations

text size: AAA
By Associated Press

INDIANAPOLIS -- Eli Lilly and Co. forecasts its 2013 earnings will grow more than Wall Street expects even though the drugmaker will lose U.S. patent protection for two more key products in the new year.

The Indianapolis company said Friday that it expects 2013 adjusted earnings of between $3.75 and $3.90 per share on $22.6 billion to $23.4 billion in revenue.

Advertisement

Analysts expect, on average, earnings of $3.72 per share on $22.87 billion in revenue, according to FactSet.

Lilly's revenue slipped last year after it lost U.S. patent protection for its all-time best selling drug, the antipsychotic Zyprexa. That exposed a drug that once topped $5 billion in annual revenue to cheaper generic competition.

This year, Lilly loses patent protection for its best-selling insulin, Humalog, in May and the antidepressant Cymbalta in December.

Cymbalta replaced Zyprexa as Lilly's top seller. Cymbalta and Humalog combined to generate about 44 percent of Lilly's roughly $8.7 billion in U.S. sales through the first nine months of 2012.

Lilly has said it will counter the revenue loss from the patent expirations by developing new drugs, cutting costs and depending on sales in foreign markets and developing countries. The drugmaker reiterated on Friday that it expects at least $3 billion in net income and revenue of at least $20 billion through 2014.

It also expects to keep paying shareholders a dividend and to complete a $1.5 billion share repurchase program this year.

Lilly also said Friday its forecast excludes a one-time benefit from the fiscal cliff deal. Company officials don't know yet whether that will be included in their adjusted earnings forecast.

The company reports fourth-quarter and 2012 results on Jan. 29.

Company shares climbed 53 cents to $49.72 Friday before trading started. The stock rose 19 percent in 2012 to close the year at $49.32.

Comments ()
We are now using Facebook comments to offer a more inclusive, social and constructive discussion. Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.

This article filed under

Business Video
Area Business Calendar

BusinessDirectory

Connect with a business or service in your area fast. First select a town, then enter a search term or choose one of the listed popular searches:

Don't see your town listed? Visit our full directory to begin your search.

MostViewed

Today
Yesterday
Most Commented
Top Jobs

    View all Top Jobs Place a job ad

    DHExtras

       
    • Newspaper next section - Newspaper next section Report card checker - report card checker
    • Dh innovation award 2 - Dh innovation award 2 Zillow /real estate page
    • Discuss refer On Guard series
    • Newspaper archives -- Monday or anyday Mike North

    FacebookActivity