To: Don Pueblo who wrote (275 ) 10/4/2001 3:31:57 AM From: EL KABONG!!! Read Replies (1) | Respond to of 444 Knowing how you feel regarding certain drugs, I thought this article might interest you...thestreet.com Plunging Prozac Sales Dim Lilly's Outlook By Adam Feuerstein Staff Reporter 10/03/2001 09:28 AM EDT Slumping Prozac sales are depressing Eli Lilly's (LLY:NYSE - news - commentary - research) profits. The drugmaker warned Wednesday of lower fourth-quarter and year-end profits due to a severe erosion in sales of Prozac. Generic versions of the antidepressant drug hit the market in August. The company is also taking down 2002 earnings estimates because of increased investment in new drugs that should begin bolstering Lilly's bottom line in 2003. Shares of Lilly fell $2.87 to $80 per share on Instinet preopen trading Wednesday. Lilly reiterated third-quarter earnings of 66 cents per share, which matches reduced Wall Street expectations. But fourth-quarter earnings will be in the range of 59 cents per share to 61 cents per share. Analysts were looking for earnings of 65 cents per share, according to Thomson Financial/First Call. "With nearly two months of Prozac sales data available, the erosion in prescriptions is the most severe ever for a blockbuster product in our industry. This affects our financial expectations for 2001 and 2002, with a particular impact in the fourth quarter of this year," said Sidney Taurel, Lilly's chairman, president and chief executive officer. In August, Lilly lost patent protection on Prozac, its top seller, which contributed $2.5 billion in global sales in 2000. By September, prescription data revealed that less-expensive generic versions of the drug had grabbed 80% of Prozac's market share. Lilly said Wednesday that it now expects full-year 2001 earnings of $2.75 per share to $2.77 per share, resulting in single-digit earnings-per-share growth for 2001. This is lower than previous 2001 earnings guidance of $2.76 per share to $2.84 per share. Lilly is basically writing off this year and next in anticipation of rebounding sales and earnings growth starting in 2003. For 2002, the drug maker now forecasts earnings in the range of $2.70 per share to $2.80 per share. Wall Street was looking for earnings of $2.94 per share. The reduced earnings are a result of additional investment required to bring new drugs in the pipeline to market, the company said. In 2003, Lilly expects to replace Prozac sales -- and build earnings per share growth back to the high-teens -- through sales of five new product launches, including the sepsis drug Xigris, the osteoporosis drug Forteo and the erectile dysfunction drug Cialis. Lilly said Wednesday that the Food and Drug Administration has sent an "approvable letter" to the company regarding Forteo. Several issues, including the drug's labeling and manufacturing, need to be cleared up before the drug receives final approval. Xigris will be discussed at an FDA advisory panel on Oct. 16, while Cialis' approval application was sent to the FDA in late June. KJC