Eli Lilly results hammered by Zyprexa patent loss

1 February 2012

US drug major Eli Lilly (NYSE: LLY) said that fourth-quarter 2011 global sales dropped 2% to $6.05 billion. This fall in revenue was comprised of an 11% decline due to price, partially offset by an increase of 8% in volume and an increase of 1% due to the impact of foreign exchange rates.

The increase in volume and reduction in price were significantly driven by the loss of US patent exclusivity for schizophrenia drug Zyprexa (olanzapine) in October 2011 and the agreement with Prasco Laboratories to supply an authorized version of olanzapine. Revenue from the drug fell 44% to $749.6 million in the fourth quarter.

Net income and earnings per share plunged 27% to $858.2 million and $0.77, respectively. Adjusted earnings, which exclude some one-time charges, were $0.87 per share, beating the average expectations of .analyst surveyed by FacSet for adjusted earnings of $0.81 per share on $5.89 billion in revenue.

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