Eli Lilly (LLY) reported fourth-quarter profit and sales declines on Thursday as patent expirations of its key depression drug Cymbalta weighed heavily on U.S. sales.
The Indianapolis-based pharmaceutical giant reported net income of $727.5 million, or 67 cents a share, down 12% from a year-earlier $827 million, or 74 cents. Excluding one-time items, Lilly said it earned 74 cents, matching average analyst estimates in a Thomson Reuters poll.
Revenue for the three-month period fell 2% to $5.81 billion from $6 billion last year as patent expirations of its blockbuster depression drug Cymbalta and osteoporosis treatment Evista triggered a 6% decline in U.S. sales.
While the results trumped the Street’s view of $5.46 billion, Lilly warned those expirations will drive “a rapid and severe decline” in revenue and earnings in 2014.
Shares of Lilly fell 1% to $53.35 in afternoon trade.
Lilly reaffirmed its fiscal 2014 outlook of $2.77 to $2.85 a share, sharply below 2013’s earnings of $4.32, and said it sees revenue of $19.2 billion to $19.8 billion, which would mark a year-over-year decline from $23.1 billion.
The current views are in-line with the consensus view of $2.81 a share and $19.55 billion.