Patent Expirations, Currencies Weigh on Eli Lilly

Eli Lilly and Co. said Friday foreign-exchange pressures weighed on sales in the most recent quarter as the pharmaceutical company continued to suffer the impact of patent expirations on some of its key drugs.

The company, citing the stronger U.S. dollar, adjusted its outlook for the year, including reducing its revenue estimate to a range of $19.5 billion to $20 billion from its previous guidance of $20.3 billion to $20.8 billion.

Lilly, like other pharmaceutical companies, is working to counter a wave of patent expirations, and resulting sales pressures, by broadening its research and business models. Two weeks ago, the company reached separate pacts with Merck Co. Inc. and Bristol-Myers Squibb Co. to collaborate on trials for immunotherapy drugs.

Lilly, which issued an outlook for this year earlier this month that fell below analysts' views, is looking to boost its business by relying on treatments for diabetes and cancer patients, as well as medical products for animals.

"Despite the loss of significant revenue for Cymbalta and Evista following the expiration of our U.S. patents, we saw strong performance from many other products," Chief Executive John C. Lechleiter said in a news release. "At the same time, we made excellent progress with our innovation-based strategy, and we continue to advance our pipeline."

Sales of Cymbalta fell 58% to $367.3 million, and Evista sales dropped 74% to $72.1 million.

Overall, Lilly posted earnings of $428.5 million, or 40 cents a share, down from $727.5 million, or 67 cents a share, in the prior-year period. Excluding items such as restructuring and asset-impairment charges, earnings were 75 cents a share, up from 74 cents a year earlier.

Revenue fell 12% to $5.12 billion.

Analysts had projected a per-share profit of 73 cents and revenue of $5.2 billion.