Summary
Eli Lilly and Company reported a decrease in revenue and net income for the second quarter and first six months of 2012 compared to the same periods in 2011. This decline was primarily driven by the loss of patent exclusivity for Zyprexa, which significantly impacted sales. Despite this, several key products like Cymbalta, Alimta, and the animal health portfolio showed growth, partially offsetting the overall revenue decline. Key financial metrics indicate a challenging period, with net income and EPS both decreasing. However, the company raised its full-year earnings per share guidance, signaling confidence in future performance. Lilly's R&D pipeline remains robust with numerous compounds in late-stage development, crucial for mitigating the impact of upcoming patent expirations. The company also continues to manage its financial position, with total debt decreasing and sufficient operating cash flow expected to cover operational needs, dividends, and share repurchases.
Financial Highlights
49 data points| Revenue | $5.60B |
| Cost of Revenue | $1.15B |
| Gross Profit | $4.45B |
| R&D Expenses | $1.32B |
| SG&A Expenses | $1.93B |
| Operating Expenses | $3.25B |
| Interest Expense | $43.00M |
| Net Income | $923.60M |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.83 |
Key Highlights
- 1Revenue for Q2 2012 decreased by 10% to $5.6 billion, and for the first six months by 7% to $11.2 billion, largely due to the loss of patent exclusivity for Zyprexa.
- 2Net income for Q2 2012 decreased by 23% to $923.6 million, and for the first six months by 14% to $1.93 billion.
- 3Earnings per share (EPS) followed suit, decreasing by 22% to $0.83 for Q2 and 14% to $1.73 for the first six months.
- 4Despite the declines, Eli Lilly raised its full-year 2012 EPS guidance to a range of $3.29 to $3.39.
- 5Key products like Cymbalta, Alimta, and the animal health business showed strong growth, partially offsetting declines from Zyprexa.
- 6Research and development expenses increased slightly, reflecting ongoing investment in a pipeline of approximately 65 potential new drugs in human testing or under regulatory review.
- 7The company's cash, cash equivalents, and short-term investments decreased to $5.26 billion, impacted by debt repayment, dividends, and investment in longer-term securities.