Eli Lilly & Co. (LLY) Profits Are Up, But Concerns Remain
January 28, 2010 1:33 PM
Eli Lilly & Co. (NYSE: LLY) reported a profit for its 4th quarter of 2009, after taking a huge charge related to its purchase of ImClone Systems during the same quarter the previous year.
According to a poll of analysts by FactSet Research, Eli Lilly was expected to earn 91 cents per share.
The company reported a net income of $915.4 million, or 83 cents per share, compared with a loss of $3.63 billion, or $3.31 per share, for the same quarter in 2008 when the ImClone acquisition charge was booked. Revenue was up 14% to $5.93 billion.
Although the revenue growth seemed impressive, investors have become worried that Eli Lilly is too dependent on its two top selling drugs, the antipsychotic medication Zyprexa and the antidepressant Cymbalta.
The two drugs are responsible for over 20% of Eli Lilly's profits but are both expected to lose patent protection over the next few years.
Lung cancer treatment Alimta, osteoporosis drug Evista and insulin product Humalog are all responsible for over $1 billion in sales each and are also losing patent protection in the next few years.
