The following article contains info from the conference call:
Prozac Boosts Eli Lilly's 1Q Net; Co. Backs Yr Views
April 20, 1998 11:54 AM
By Jennifer Fron Mauer
NEW YORK (Dow Jones)--Strong sales of its
antidepressant drug Prozac helped boost Eli Lilly &
Co.'s (LLY) profits 20% in the first quarter.
"In terms of brining home the bacon, (Lilly's) still a
Prozac story," said Alex Zisson, an analyst at
Hambrecht & Quist Inc.
The giant pharmaceutical company said it earned $521.1
million, or 46 cents a diluted share, compared with
year-ago net income of $432.6 million, or 38 cents a
diluted share. Those figures were in line with analysts'
estimates of 46 cents a diluted share, according to First
Call Inc.
The latest results included a loss of $7.2 million, or one
cent a share, for the early retirement of debt. The
year-ago figures included charges associated with the
discontinuation of a collaboration with Somatogen Inc.
Sales rose 16% to $2.27 billion from $1.95 billion,
driven by a 10% increase in sales of Prozac to $617.6
million.
In a conference call with analysts, company officials said
that although Prozac's patent will expire in 2003, the
popular drug won't face generic competition in the U.S.
until at least 2004, according to analysts on the call.
In addition, company officials backed analysts' 1998
estimates of $1.85 to $1.89 a share.
Analysts also were impressed the increased sales of
Lilly's antipsychotic drug Zyprexa. Sales rose 172% in
the quarter to $287.2 million. Zisson said the drug is
doing very well against market leader Risperdal, made
by Johnson & Johnson (JNJ).
The NYSE-listed shares of Lilly rose to a new high of
73 3/4 early Monday on the strong earnings report and
news that a study will show the company's Evista
osteoporosis drug can help prevent cancer.
The study, which is expected to be released at the
American Society of Clinical Oncology conference May
16-19, is said to show that Evista can reduce the risk of
breast cancer and cancer of the uterine lining.
Analysts said they were cautiously optimistic about what
the new study results will mean for Evista's sales.
Launched in the first quarter, Evista had sales of $33.4
million.
Lilly's NYSE-listed shares were up 3 3/8, or 4.9%, to
71 3/4 on composite volume of 6.7 million shares,
compared with average daily volume of 4.3 million.
-By Jennifer Fron Mauer; 201-938-5287;
jennifer-fron.mauer@cor.dowjones.com |
