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Biotech / Medical : Eli Lilly -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (238)	5/29/1998 6:30:00 PM
From: Anthony Wong	Respond to of 642

Eli LiLLY Forecasts Strong Growth On Wider Uses Of Key Drugs May 28, 1998 1:04 PM INDIANAPOLIS -(Dow Jones)- Eli Lilly & Co. projected a rosy future Thursday, as it said key drugs will boost sales growth and profitability while it will try to maintain its hold on the depression market despite the loss of patent protection for its ubiquitous Prozac drug. The pharmaceutical company (LLY) expects sales growth of 15% to 20% and earnings per share growth of about 20% this year, as well as strong sales and earnings growth in the next several years. Also Thursday, the company said the board authorized a $2 billion share repurchase program to be completed by the end of the year, including the $525 million in common shares already purchased. Eli Liily said repurchased shares may be retired or held for use in the company's equity compensation programs or for other general purposes. Indianapolis-based Lilly said it is pursuing new indications for all of its key drugs, including Prozac; Evista, which is currently approved for osteoporosis; Gemzar, which is cleared for pancreatic cancer; Humalog, used against diabetes; and ReoPro, which is used for a variety of coronary applications. Of all its drugs, Evista has made the biggest news splash lately. It belongs to a class of drugs known as selective estrogen receptor modulators, or SERMs, and is believed to also block the development of new breast cancers. If further trials comparing Evista with another breast cancer drug, tamoxifen, show favorable results in preventing cancer, Lilly may very well have a blockbuster on its hands. Evista doesn't seem to carry the risk of uterine cancer that tamoxifen does. It may also prevent heart disease and reduce so-called bad cholesterol. Lilly said it will focus "more resources on its marketing and leveraging an ongoing flow of clinical data supporting a strong and broad profile for Evista." Regarding Prozac, Lilly said it will come up with a new formulation of the drug, a combination Prozac drug, and "one or more new chemical entities for depression." The U.S. patent on Prozac expires in 2004, opening it up to generic competition. Following Lilly's announcement, Moody's Investors Service confirmed the company's Aa3 long-term debt and counterparty ratings as well as the company's Prime-1 rating for commercial paper. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.