|
Merck, Lilly meet 3Q views
|
 |
October 18, 2001: 12:56 p.m. ET
Merck's earnings up, Lilly's down, but both drugmakers meet analysts' forecasts.
|
NEW YORK (CNNmoney) - Two of the nation's largest drugmakers reported earnings Thursday, with Merck and Eli Lilly both meeting analysts' estimates.
Merck & Co. reported a 6 percent rise in third-quarter profit, meeting Wall Street forecasts, though sales came in weaker than expected at the nation's biggest drugmaker.
Merck (MRK: down $1.87 to $67.18, Research, Estimates) also said it remains comfortable with its earlier guidance for full-year earnings, putting it on track to report improved fourth-quarter results as well.
The Whitehouse Station, N.J.-based company earned $1.9 billion, or 84 cents a share, up from $1.8 billion, or 78 cents a share, a year earlier, and in line with forecasts of analysts surveyed by First Call.
Revenue rose to $11.9 billion from $10.6 billion but fell short of First Call's forecasts of $12.3 billion. The company said its five major drugs had a combined 30 percent sales gain but currency exchange rate fluctuations hurt its sales outside the United States.
The company said it remains comfortable with earlier guidance that earnings per share for the year should be between $3.12 and $3.18. First Call's forecast is for full-year earnings of $3.14, up from $2.90 a share a year earlier.
Merck also said it was in discussions with the U.S. government about the possibility of helping to develop a vaccine against the smallpox virus, in the wake of growing concerns about the threat of bioterrorism.
Separately, Eli Lilly (LLY: up $1.20 to $76.20, Research, Estimates) said its third-quarter profit fell 7 percent, as expected, after sales of its popular antidepressant Prozac tumbled on competition from cheaper generics.
The Indianapolis-based company, which also makes the schizophrenia treatment Zyprexa and osteoporosis drug Evista, posted earnings before adjustments of $723 million, or 66 cents a share, compared with $779 million, or 71 cents a share, a year ago. After adjustments, profit fell 27 percent.
Analysts expected Lilly to earn 66 cents a share, according to First Call, in line with company forecasts that incorporated lower Prozac sales.
Global revenue from Prozac, which lost its U.S. marketing exclusivity in August and immediately was beset by cheaper copycat drugs, plunged 34 percent to $450 million in the third quarter, the most dramatic sales decline in history for a drug losing patent protection.
The company said it expects the slow growth rate to continue, with single-digit sales growth for 2001 and 2002.
Revenues rose 2.2 percent to $2.87 billion.
Lilly suffered a potential setback earlier this week when an advisory panel to the U.S. Food and Drug Administration split on whether to recommend approval Xigris, the company's experimental treatment for a deadly blood-infection syndrome called sepsis.
"We are working with the FDA to resolve all the issues raised by the advisory committee regarding Xigris in order to ensure that the product is made available on an expeditious basis," Lilly Chairman, President and CEO Sidney Taurel said. 
-- from staff and wire reports
|
|
|
|
|
 |
|
