Lilly Posts Profit- Cialis Sales Increase
November 05, 2009

Eli Lilly & Co., raised its 2009 forecast after reporting a profit on increased sales of cancer, depression drugs and erectile dysfunction drug Cialis. The results topped analysts' estimates.

Third-quarter net income was $941.8 million, or 86 cents a share, compared with a loss of $465.6 million, or 43 cents, a year earlier, the Indianapolis-based company said today in a statement. Earnings excluding some items were $1.20, beating by 18 cents the average estimate of 15 analysts.

Sales rose 6.8 percent to $5.56 billion, boosted by higher demand and price increases. Revenue from Zyprexa, the antidepressant Cymbalta, the cancer drug Alimta and impotence pill Cialis all increased. Lilly also reiterated plans to reduce costs by $1 billion by the end of 2011 through measures including job cuts.

"They had a great quarter and exceeded expectations, but longer-term they've got massive patent losses coming and very little visibility on what may materialize out of the pipeline to replace those lost revenues and earnings," Deutsche Bank analyst Barbara Ryan said by telephone today.

"They're probably going to have to continue to make acquisitions such as the one they did with ImClone," said Ryan, who recommends holding Lilly shares and doesn't own any.

Lilly boosted its full-year adjusted earnings forecast to $4.30 to $4.40 a share. In July, the company projected 2009 adjusted earnings of $4.20 to $4.30 a share, and "mid-single digit" growth in full-year sales.