Q3 profits down at Lilly

Profits at Eli Lilly fell 5% in the third quarter of 2011 to $1.24 billion despite revenue increasing nearly 10% to $6.15bn.

Strong sales performances by Cymbalta, Humalog, Forteo, Strattera, Cialis (pictured) and Alimta boosted revenue, although sales of Zyprexa and Gemzar were down after they faced generic competition for the first time.

John Lechleiter, CEO, Lilly, says that the company is “well-prepared” to meet the “challenges before us” as it prepares to face the loss of patent exclusivity on the two brands.

Zyprexa’s sales generated $1.18bn during the quarter, a decrease of 3% compared to the same time last year, after revenue dropped in the US by $563.2 million. It will lose its exclusivity in the US this month after the patent expired in Europe in September.

But with the introduction of cheaper generic copies, Lilly says it now expects a "rapid and severe decline in Zyprexa sales".

Sales in other divisions of the company boosted overall profits, especially in animal health where sales were up 28% compared with Q3 of 2010.

As a result in the drop in profits, Lilly did not raise its full-year profit forecast but Damien Conover, a financial analyst at Morningstar, said the “sales look reasonably good”.