Lilly Profit Falls On Acquisition Costs
Make a commentBy Ed Silverman // July 24th, 2007 // 6:52 am
The drugmaker says profits fell 19 percent thanks to buying Icos, a $2.4 billion deal that included the Cialis impotence drug; Hypnion, which provided entree to sleeping pills; and Ivy Animal Health. You can read the press release here.
Net income dropped to $663.6 million, or 61 cents, from $822 million, or 76 cents, a year ago. Revenue rose 20 percent to $4.6 billion, thanks to increased demand for its Cymbalta antidepressant - sales were up 67 percent - and the Byetta diabetes drug. You can look at a group of slides with more detail here.
Lilly bought the companies to lessen dependence on its Zyprexa antipsychotic, which has generated controversy, huge legal settlements and government investigations over marketing tactics and side effects, such as weight gain and diabetes. Zyprexa revenue was up just 9 percent, to $1.2 billion.
“They don’t have any real generic exposure at this point for any of their meaningful drugs,” Barbara Ryan, an analyst at Deutsche Bank Securities, tells Bloomberg News, “but Zyprexa is clearly not a growth product any longer.”