Oct 23, Eli Lilly and Co. said an expected settlement of investigations into top-selling drug Zyprexa wiped out its third-quarter profit, but the drugmaker's adjusted earnings still beat Wall Street expectations.
Eli Lilly lost $465.6 million, or 43 cents per share. Last year it earned $926.3 million, or 85 cents per share, in the same quarter. Excluding charges that included almost $1.5 billion for the settlement, Lilly earned $1.04 per share. Sales climbed 14 percent to $5.21 billion from $4.59 billion. Lilly saw overall sales volume grow 6 percent in the quarter, driven by big increases for several products. Sales for the anti-psychotic Zyprexa rose 2 percent to $1.19 billion.
Analysts’ Expectation:
Thomson Reuters says analysts were expecting a profit of $1.02 per share and revenue of $5.09 billion, excluding the payment.
Full Year’s Earning Forecast:
Based on the third-quarter results, Lilly raised its adjusted profit forecast to $3.97 to $4.02 per share, up from $3.85 to $4 per share. Including the Zyprexa settlement, however, the company now expects a profit of $2.44 to $2.49 per share - down from $3.79 to $3.94 per share. Analysts expected a profit of $3.95 per share on $20.55 billion in revenue. On Oct. 6, Lilly agreed to buy ImClone accepted for more than $6 billion, or $70 per share.
Reaction of the Earning:
The company's stock price rose 2 percent, or 64 cents, in Thursday morning trading to $32.75 and at the end of the day it rose more than 4%.
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