Drugmaker Eli Lilly and Co. (LLY) on Wednesday reported a slight decline in first-quarter profit, as sales of its schizophrenia drug Zyprexa halved due to patent expirations.
Adjusted earnings and revenues came in well above Wall Street estimates aided by 'significant' growth in other products and key regions, helping the company lift its full-year earnings guidance.
Zyprexa sales plunged 56 percent to $562.7 million due to the loss of patent exclusivity in the U.S. and most major international markets outside of Japan. The effect was partially offset by a 23 percent growth in sales of depression drug Cymbalta at $1.11 billion.
In the first quarter, net income slid to $1.01 billion or $0.91 per share from $1.06 billion or $0.95 per share in the prior year.
Adjusting for non-recurring items, earnings dropped to $0.92 per share from last year's $1.24 per share. On average, 16 analysts polled by Thomson Reuters expected earnings of just $0.78 per share. Analysts' estimates typically exclude special items.
Total revenue slipped 4 percent to $5.60 billion, but topped Wall Street estimate of $5.36 billion comfortably.
The revenue drop comprised of a decrease of 7 percent due to lower volume of Zyprexa sold in most major markets, partially offset by an increase of 4 percent in prices.
Total revenue in the U.S. remained relatively flat at $3.09 billion, while outside the U.S., it decreased by 9 percent to $2.52 billion. China remained Lilly's fastest-growing market, with revenue growth of 41 percent.
Elanco Animal Health division revenue grew 33 percent to $490.7 million, driven by gains in both the food animal and companion animal portfolios.
Looking ahead, the company raised its full-year reported earnings forecast to a range of $3.14 to $3.29 per share and adjusted earnings guidance to a range between $3.15 and $3.30 per share. The previous forecast was for earnings of $3.10 to $3.20 for 2012.
The company still expects 2012 revenue of between $21.8 billion and $22.8 billion. Wall Street is currently looking for earnings of $3.18 per share on revenues of $22.42 billion.
LLY closed on Tuesday at $39.96, up from the prior close of $39.81, on a volume of 4.84 million shares.
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