Andy, Speaking of notification, LGND's deal is getting quite a bit of press after the close. Here's what'sin the WSJ interactive edition:
The Wall Street Journal Interactive Edition -- October 20, 1997
New Drugs Help Eli Lilly Post
9.9% Rise in 3rd-Quarter Net
Dow Jones Newswires
NEW YORK -- Pharmaceutical giant Eli Lilly & Co. said Monday its
third-quarter earnings rose 9.9%, boosted by strong sales of its newer
products as well as the antidepressant Prozac in the U.S.
For the quarter ended Sept. 30, Lilly posted net income of $456.9 million,
or 41 cents a share, compared with $415.6 million, or 38 cents a share, a
year ago.
The current quarter was adjusted for a recent 2-for-1 stock split, and beat
analysts' expectations by a penny a share. The year-ago quarter included a
gain of six cents a share for the sale of the U.S. marketing rights for oral
antibiotics Ceclor CD and Keftab to Dura Pharmaceuticals.
Overall sales jumped 20% to $2.16 billion from $1.8 billion, with new
products comprising more than 74% of that growth. Sales volume growth of
22% and a 2% increase in global selling prices were partially offset by
unfavorable exchange-rate comparisons of 4%.
The Indianapolis-based company said earnings were affected by reduced
goodwill and an interest expense resulting from the second-quarter
write-down of its PCS Health Systems unit and the sale of Lilly's interest in
the DowElanco agricultural joint venture with Dow Chemical Co.
Total U.S. pharmaceutical sales and services rose 30%, while international
sales increased 5%. Volume growth of 18% was partially offset by a 10%
reduction from unfavorable exchange rates and a 3% reduction in selling
prices.
World-wide pharmaceutical sales and services grew 20% to $2.02 billion,
led by strong sales of Gemzar, used to treat pancreatic cancer; ReoPro,
used to prevent heart attacks; and the antipsychotic drug Zyprexa, which
has turned out to be the company's most successful products in its first year
of sales. Sales of Zyprexa rose 29% to $202 million, led by strong U.S.
performance. Sales of ReoPro increased 64% to $63 million, while sales of
Gemzar rose 15% to $47 million.
Prozac sales increased 11% to $705 million, driven by an increase of 17%
in the U.S. International sales of Prozac decreased 11% because of the
strong dollar, continuing generic competition in Canada and competitive
pressure in France. Sales of the drug were strong in Britain.
Sales of insulin products rose 3% in the U.S. to $169 million, and
international sales rose 4% to $92 million.
In separate news, Lilly and San Diego-based Ligand Pharmaceuticals Inc.
Monday formed an alliance to discover and develop products based on
Ligand's intracellular receptor technology.
The companies said the collaboration will focus on products with broad
applications for metabolic diseases, including diabetes, obesity, dislipidemia,
insulin resistance and cardiovascular diseases associated with insulin
resistance and obesity. Lilly may make a $37.5 million equity investment in
Ligand at $17.23 a share, the companies said.
Last Thursday, another pharmaceutical giant, Merck & Co., posted a 19%
increase in net income to $1.2 billion, or 99 cents a share, from $1 billion, or
83 cents a share, in the year earlier period. However, the profit was a penny
less than Wall Street's expectations of $1 a share, according to First Call. |
