NEW YORK (CNN/Money) -
Eli Lilly and Co.'s second-quarter profit fell sharply Thursday, hurt by lagging sales of its antidepressant Prozac and flat sales of its new blood infection medicine Xigris.
For the quarter ended June 30, the Indianapolis-based drugmaker posted earnings of $658.5 million, or 61 cents a share, down from $827.7 million, or 76 cents a share. Analysts polled by earnings tracker First Call anticipated a profit of 61 cents a share.
Sales fell 9 percent to $2.78 billion from $3 billion, mainly because of declining Prozac sales, the company said.
Lilly also said it anticipates third-quarter earnings of 67 to 69 cents a share and lowered its own full-year forecast to $2.60-$2.62 from $2.60-$2.65. Wall Street is expecting third-quarter profit of 61 cents a share and full-year earnings of $2.61, according to First Call.
Lilly's (LLY: down $2.90 to $48.00, Research, Estimates) shares fell $5.07 to $45.83 in early trading following the earnings report Thursday.
The results represent the fourth consecutive earnings decline for Lilly, which has struggled to overcome the loss of U.S. patent protection for Prozac last year as well as manufacturing problems that have delayed approval of key medicines for osteoporosis and schizophrenia. Lilly hopes to overcome the Prozac slump by bringing a slew of new medicines to market from its lineup of drugs in development.
The company said the U.S. Food and Drug Administration recently conducted a comprehensive review of eight of the firm's manufacturing sites around the world, including its Indianapolis facilities, but has not yet issued its final conclusions and recommendations.
"From our recent discussions with the FDA as well as the progress we've made at inspections outside Indianapolis, we believe we are making progress and moving in the right direction with our global quality improvement plan. However, we still have more work to do, especially at certain Indianapolis facilities," Pedro Granadillo, senior vice president, said.
Sales of Prozac, which lost its U.S. patent protection last August, plunged 72 percent to $195 million, as patients shifted to cheaper generics.
The company's new drug Xigris for sepsis, a potentially fatal clotting condition caused by blood infections, were only $22.6 million in the second quarter, virtually flat with the prior quarter.
The sales figures were another blow to Xigris, which industry analysts last year had expected to become a huge blockbuster, with potential sales this year of up to $600 million. But doctors have shied away from prescribing it because of safety concerns.
-- From staff and wire reports