Lilly fourth quarter worldwide total revenue increases 4% to $6.187 billion

Eli Lilly and Company today announced financial results for the fourth quarter and full year of 2010.

For the full year of 2010, worldwide Cialis sales increased 9 percent to $1.699 billion. U.S. Cialis sales for 2010 were $658.1 million, a 6 percent increase driven by higher prices. Cialis sales outside the U.S. were $1.041 billion, an 11 percent increase driven primarily by increased demand, and to a lesser extent, higher prices.

Gemzar

Gemzar sales totaled $243.6 million in the fourth quarter of 2010, a decrease of 22 percent from the fourth quarter of 2009. Sales in the U.S. decreased 27 percent, to $140.1 million, due to the impact of generic competition which began November 15, 2010. Sales outside the U.S. decreased 13 percent, to $103.5 million, due primarily to generic competition in most major markets.

For the full year of 2010, worldwide Gemzar sales decreased 16 percent to $1.149 billion. U.S. Gemzar sales for 2010 were $723.3 million, a 3 percent decrease due to the impact of generic competition. Gemzar sales outside the U.S. were $426.1 million, a 31 percent decrease due primarily to generic competition in most major markets.

Humulin

Worldwide Humulin sales increased 5 percent in the fourth quarter of 2010, to $287.9 million. U.S. sales increased 17 percent to $120.4 million, driven by increased demand resulting from the new partnership with Walmart for Humulin?® ReliOn?®. Sales outside the U.S. decreased 2 percent, to $167.5 million, driven by lower prices and the unfavorable impact of foreign exchange rates, partially offset by increased demand.

For the full year of 2010, worldwide Humulin sales increased 7 percent to $1.089 billion. U.S. Humulin sales for 2010 were $470.8 million, a 17 percent increase driven primarily by higher prices and higher demand. Humulin sales outside the U.S. were $618.0 million, essentially flat when compared to 2009, due to lower prices offset by increased demand and the favorable impact of foreign exchange rates.

Evista

Evista sales were $266.5 million in the fourth quarter of 2010, a 1 percent increase compared with the fourth quarter of 2009. U.S. sales of Evista increased 3 percent to $181.6 million, as a result of higher prices, partially offset by decreased demand. Sales outside the U.S. decreased 2 percent to $84.9 million, driven by reduced prices, partially offset by increased demand and the favorable impact of foreign exchange rates.

For the full year of 2010, worldwide Evista sales decreased 1 percent to $1.024 billion. U.S. Evista sales for 2010 were $681.8 million, essentially flat due to decreased demand offset by increased prices. Evista sales outside the U.S. were $342.6 million, a 2 percent decrease driven by lower prices and decreased demand, partially offset by a favorable impact of foreign exchange rates.

Forteo

Fourth-quarter sales of Forteo were $226.3 million, a 6 percent increase compared with the fourth quarter of 2009. U.S. sales of Forteo increased 2 percent to $132.0 million due to higher prices, partially offset by lower demand.  Sales outside the U.S. increased 13 percent, to $94.2 million, due to increased demand and to a lesser extent, higher prices, partially offset by the unfavorable impact of foreign exchange rates.

For the full year of 2010, worldwide Forteo sales increased 2 percent to $830.1 million. U.S. Forteo sales for 2010 were $499.0 million, a 4 percent decrease driven by lower demand, partially offset by higher prices. Forteo sales outside the U.S. were $331.0 million, an 11 percent increase driven by increased demand, and to a lesser extent, higher prices.

Strattera

During the fourth quarter of 2010, Strattera generated $155.4 million of sales, a decrease of 4 percent compared with the fourth quarter of 2009. U.S. sales decreased 14 percent to $101.4 million, due to lower net effective selling prices and lower demand. Sales outside the U.S. increased 21 percent, to $53.9 million, driven by increased demand, partially offset by lower prices. Demand outside the U.S. was favorably impacted by continued strong demand in Japan.

For the full year of 2010, worldwide Strattera sales decreased 5 percent to $576.7 million. U.S. Strattera sales for 2010 were $389.8 million, a 13 percent decrease driven by lower demand, and to a lesser extent, lower net effective selling prices. Strattera sales outside the U.S. were $186.9 million, a 14 percent increase driven by increased demand, partially offset by lower prices.

Byetta?®

Lilly recognizes in revenue its 50 percent share of Byetta’s gross margin in the U.S., 100 percent of Byetta sales outside the U.S., and its sales of Byetta pen delivery devices to its partner, Amylin Pharmaceuticals. For the fourth quarter of 2010, Lilly recognized total revenue of $105.3 million for Byetta, a decrease of 13 percent.

Worldwide sales of Byetta were $174.6 million in the fourth quarter of 2010, a 14 percent decrease compared with the fourth quarter of 2009, due to competitive pressures in the U.S. and European markets. U.S. sales of Byetta decreased 17 percent to $136.4 million compared with the fourth quarter of 2009, while sales of Byetta outside the U.S. decreased 4 percent to $38.2 million.

For the full year of 2010, worldwide Byetta sales decreased 11 percent to $710.2 million. U.S. Byetta sales for 2010 decreased 16 percent to $559.3 million, while sales outside the U.S. increased 17 percent to $150.9 million. For the full-year of 2010, Lilly recognized revenue totaling $430.6 million, representing a 4 percent decrease compared with 2009.

Erbitux?®

Lilly recognizes net royalties received from its Erbitux collaboration partners and revenue from manufactured product sold to these partners. For the fourth quarter of 2010, Lilly recognized total revenue of $94.5 million for Erbitux, a decrease of 1 percent from the fourth quarter of 2009. For the full-year of 2010, Lilly recognized total Erbitux revenue of $386.1 million, a decrease of 1 percent from 2009.

Effient?„?

Worldwide Effient sales were $47.0 million in the fourth quarter of 2010, up from $36.3 million in the third quarter of 2010. U.S. Effient sales were $35.8 million. Sales outside the U.S. were $11.3 million.

For the full year of 2010, worldwide Effient sales were $115.0 million. U.S. Effient sales for 2010 were $84.6 million. Sales outside the U.S. were $30.4 million.

Animal Health

Worldwide sales of animal health products in the fourth quarter of 2010 were $424.3 million, an increase of 20 percent compared with the fourth quarter of 2009. U.S. sales grew 25 percent, to $234.5 million, due to increased demand. Sales outside the U.S. increased 15 percent, to $189.8 million, driven by increased demand and the impact of a recent acquisition.

For the full year of 2010, worldwide animal health sales increased 15 percent to $1.391 billion. Animal health sales in the U.S. and outside the U.S. increased 15 percent to $775.1 million and $616.3, respectively, driven primarily by increased demand.  

2011 Financial Guidance

The company is providing financial guidance for 2011. The company expects full-year 2011 earnings per share to be in the range of $3.92 to $4.07 on a reported basis and $4.15 to $4.30 on a non-GAAP basis. The company’s guidance includes the dilutive impact of the upfront fee and other anticipated expenses related to the collaboration with Boehringer Ingelheim, but excludes potential restructuring charges primarily related to severance and other related costs from previously announced strategic actions that the company is taking to reduce its cost structure and global workforce.

2011 Earnings Per Share Expectations:

The company expects total revenue growth will be flat to slightly increasing. The company anticipates that the impact of U.S. health care reform will lower 2011 revenue by $400 million to $500 million. 2011 revenue guidance assumes the company maintains its patent exclusivity for U.S. Strattera sales, and also assumes rapid and severe erosion of global Zyprexa sales after patent expirations in major markets, including the U.S. starting in October 2011, and the continued severe erosion of U.S. Gemzar sales. The company expects these reductions in revenue to be offset by sales growth of Alimta, Cialis, Cymbalta, Effient, Humalog and animal health products. Excluding the anticipated decline in Zyprexa and Gemzar sales outside of Japan, and the incremental impact of U.S. health care reform, the company would expect 2011 revenue to grow in the mid- to high-single digits.

The company anticipates that gross margin as a percent of revenue will decline approximately 2 percentage points.

Marketing, selling and administrative expenses are projected to grow in the low- to mid-single digits and include an estimated $150 million to $200 million in non-tax deductible expense for the mandatory pharmaceutical manufacturers fee associated with U.S. health care reform. Research and development expense growth is projected to be relatively flat.

Other income is expected to be a net expense of between $50 million and $150 million, and the tax rate is expected to be approximately 21.5 percent.

Earnings per share are expected to decline and be in the range of $3.92 to $4.07 on a reported basis and $4.15 to $4.30 on a non-GAAP basis. Compared with 2010, the company anticipates that the Zyprexa and Gemzar sales erosion will lower EPS growth by approximately 15 to 17 percentage points, while the incremental impact of U.S. health care reform is expected to reduce EPS growth by approximately 4.5 to 5.5 percentage points. The collaboration with Boehringer Ingelheim is expected to reduce EPS growth by approximately 4.5 to 5.5 percentage points.

Cash flows are expected to be sufficient to fund capital expenditures of between $800 million and $900 million, as well as anticipated business development activity and the company’s dividend.

SOURCE Eli Lilly and Company

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