Lilly reveals strong pipeline as it seeks to recover from reaching patent cliff

US drugmaker Eli Lilly (NYSE: LLY) hopes to launch new medicines to treat unmet patient needs in an aim to return the company to revenue growth and expanding margins after 2014, it announced at an investment day yesterday.

Lilly also reaffirmed its near-term goals of generating at least $20 billion in revenue, $3 billion in net income and $4 billion in operating cash flow through 2014, despite the impending loss of revenue due to patent expirations for depression drug Cymbalta (duloxetine hydrochloride), and osteoporosis drug Evista (raloxifene) in the USA, beginning in December. Despite calling it an “upbeat” outlook, the company admitted it would be “challenging” for the company to meet the minimum revenue goal of $20 billion in 2014.

Chief financial officer Derica Rice said: “To prepare Lilly for 2014 and beyond, we committed to replenishing and advancing our pipeline, driving revenue in our growth engines and key marketed products, and increasing productivity and reducing our cost structure.” Mr Rice also noted that market factors, including the devaluation of the Japanese yen and slower market growth in key emerging market countries, have moderated the company's near-term revenue growth expectations.