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18Apr2000 USA: Companies - Eli Lilly's Net Jumps on Demand For Its
New Drugs.
Results Offset Slowing Sales For Antidepressant Prozac
NEW YORK - Eli Lilly & Co. posted solid first-quarter
earnings, fueled by higher demand for newer pharmaceuticals,
which offset slowing sales of antidepressant Prozac.
Indianapolis-based Lilly said net income rose to $692.3 million
(721.3 million euros), or 63 cents a share, adjusted for a one-time
gain of $214 million from the sale of Kinetra, its joint venture with
Electronic Data Systems Corp. The net income also was adjusted
to include $91 million of sales that normally would have been
realized during the first quarter but were realized during the fourth
quarter of 1999 because of Y2K-related wholesaler buying
patterns. A year earlier, Lilly had earnings of 53 cents a share, on
a comparable basis. Lilly said the current per-share earnings
benefited from a stock repurchase program.
Adjusted for year-2000 wholesaler buying, Lilly sales increased
13% in the quarter to $2.54 billion from $2.26 billion.
Lilly's operating earnings exceeded the 61-cent consensus
estimate by First Call/Thomson Financial.
While analysts weren't surprised by Lilly's performance, many
were relieved to see even the 1% increase from $589.9 million a
year ago.
"The fact that Prozac was up 1% year-over-year (indicates) the
majority of this market-share erosion is behind us," said Leonard
Yaffe, an analyst at Banc of America Securities LLC. "To us,
Prozac is the most significant product today. But going forward,
Lilly's other drugs are behind the growth."
Sales of osteoporosis drug Evista soared 84% to $100.5 million
from $54.6 million. In September, the U.S. Food and Drug
Administration approved a further indication for the drug to treat
the bone-thinning disease that often leads to hip, wrist and spine
fractures in postmenopausal women. The added indication
introduced a larger patient population to Evista, according to Mr.
Yaffe.
Sales of diabetes-care products were higher than analysts
expected, with $392 million in sales, up 53% from $256.6 million
a year earlier.
(Copyright (c) 2000, Dow Jones & Company, Inc.).
Sources:WALL STREET JOURNAL EUROPE 18/04/2000
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