Eli Lilly and Company has suffered setback during the first quarter ended March 2012 on account of expiration of the Zyprexa patent in US and other markets. Its reported net profit declined by 4.3 per cent to US$1,011 million from $1,056 million in the corresponding period of last year. Its total revenues also declined by 4.1 per cent to $5,602 million from $5,839 million. The EPS declined to $0.91 from $0.95 in the last period.
The decrease in volume was driven by the loss of patent exclusivity for Zyprexa in most major markets, partially offset by volume gains for other products. Total revenue in the US remained relatively flat at $3.085 billion due to the loss of patent exclusivity for Zyprexa, offset by increased prices and, to a lesser extent, increased volume in other products. Total revenue outside the US decreased by 9 per cent to $2.517 billion, driven by the loss of patent exclusivity for Zyprexa, partially offset by increased volume in other products including Cymbalta, Forteo, Humalog, Efient and the animal health portfolio, as well as a 41 per cent revenue increase in China.
John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer, said, "Lilly's financial results in the first quarter represent a solid start to the year and support our decision to increase our 2012 EPS guidance. Notwithstanding the negative effect of the expiration of the Zyprexa patent in the US and many international markets, Lilly demonstrated strong underlying growth in other products and key regions; specifically, Cymbalta, Forteo, Effient, diabetes care and our animal health portfolio, as well as our fast-growing affiliate in China. We continue to invest appropriately in our pipeline, with 12 potential new medicines now in phase III clinical trials. We strongly believe that our innovation-based strategy will enable Lilly to return to steady growth following a period of multiple patent expirations."
The US FDA approved Amyvid, a radioactive diagnostic agent indicated for brain imaging of beta-amyloid plaques in patients with cognitive impairment who are being evaluated for Alzheimer's Disease and other causes of cognitive decline during the quarter. Further, the European Commission granted marketing authorization to Byetta (exenatide twice-daily) as an adjunctive therapy to basal insulin, with or without metformin and/or Actos (pioglitazone), for the treatment of type 2 diabetes in adults who have not achieved adequate glycemic control with these agents.