Eli Lilly & Co has received setback during the first quarter ended March 2014 due to loss of patent for Cymbalta and Evista. Its net earnings declined sharply by 53 per cent to $728 million from $1,548 million in the corresponding period of last year. Its total revenues also nosedived by 16 per cent to $4,683 million from $5,602 million. The earnings per share declined to $0.68 from $1.42 in the last period.
Dr John C Lechleiter, chairman, president and CEO, said, “Lilly's first-quarter results reflect the substantial decline in revenue and earnings that we expected to encounter as a result of the recent US patent expirations for Cymbalta and Evista. Beyond our financial performance, the initial months of 2014 have included a series of key regulatory actions, pipeline announcements and business development transactions that solidify the company's future growth prospects, highlighted by the approval of Cyramaza in the US and the announced acquisition of Novartis Animal Health.”
Lilly's revenue decline was comprised of 8 per cent due to lower volume, 6 per cent due to lower prices, and 2 per cent due to the unfavorable impact of foreign exchange rates. Its total revenue in US declined by 34 per cent to $2,084 million due to lower demand for Cymbalta as well as lower prices, primarily for Cymbalta and Evista. Further, US sales negatively affected by wholesaler buying patterns on various products. The sales of Cymbalta declined by 64 per cent to $478 million from $1,328 million in the similar period of last year and that of Evista by 38 per cent to $150 million from 241 million. The sales of Humalog increased by 3 per cent to $650 million and that of Alimta moved up by 2 per cent to $632 million.
However, its total revenue outside the US increased by 5 per cent to $2,599 million. Its R&D expenditure declined by 18 per cent to $1,109 million due to milestone payments and charge for discontinuation of the rheumatoid arthritis programme for tabalumab, both taken in the first quarter of 2013, as well as lower clinical development costs in the first quarter of 2014.