A restructuring Eli Lilly and Co. (NYSE:LLY), which faces patent losses on 80% of its key drugs by 2013, will report third-quarter earnings on Wednesday. A live
Webcast of the conference call will be held from 9 a.m. to 10 a.m.
Of first note, Lilly will take a 23 cents per share restructuring
charge on its earnings due to a sale of its Lafayette, Ind.,
manufacturing site, known as Tippecanoe Laboratories, to chemical-maker
Evonik Laboratories AG. Evonik plans to keep the 700 lab employees.
Analysts at Cowen and Co. LLC expect earnings per share of
$1 on sales of $5.5 billion. In the previous year's period, Eli Lilly reported a loss of 43 cents a share on settlements regarding its Zyprexa antipsychotic drug. Revenue was $5.21 billion.
Cowen expects strong third-quarter growth from Alimta
(+27% to $400 million), Cymbalta (+15% to $825 million), Humalog (+9% to $470 million)
and Cialis (+4% to $390 million). It expects Lackluster performance from Zyprexa (-3% to $1.150 billion), Gemzar, Evista,
Erbitux U.S., Strattera and Xigris.
Despite its "lackluster performance," Indianapolis' Eli Lilly will miss
revenue from its blockbuster schizophrenia drug Zyprexa as its -- along with three
other key drugs -- patent expires.
Restructuring, M&A strategy
As we reported last month,
Lilly is reorganizing its business model and cutting jobs (5,500 of them) as its digesting acquisitions of ImClone Systems Inc. for $6.5 billion and Monsanto Co.'s (NYSE:MON) dairy cow hormone for $300 million. Lilly hopes to reduce its cost structure by $1 billion by 2011. The Indianapolis company will reorganize into five global business units by January: oncology, diabetes, established markets, emerging markets and the Elanco animal health unit.
Leading the onco unit (the oncology sector has been
ripe with dealmaking) is former ImClone CEO John Johnson.
Even though Lilly's giant pharma cousins have been consolidating via megamergers, CEO John Lechleiter remains focused on improving Lilly's internal development and making smaller-scale buyouts instead of going for a big merger that he thinks is a short-term fix.
Eli Lilly is also a Most Admired Corporate Dealmakers award candidate in the pharma, biotech and life sciences sector. Check out a list of the competitors and vote for the best dealmakers at
www.TheDeal.com/CDsurvey. -
Baz HiralalAlso see:
Credit Suisse names pharma acquisition targetsSee the complete list of pharmaceuticals, biotech and life sciences companies
| Eli Lilly & Co. |
| Acquisitions |
Date |
Target |
Acquirer |
Deal value ($mill.) |
9/10/08 |
ImClone Systems Incorp. |
Eli Lilly & Co. |
$6,198 |
8/20/08 |
Monsanto Co.
(Posilac bovine somatotropin) |
Elanco Animal Health Inc.
(Parent: Eli Lilly & Co.) |
404 |
7/8/08 |
SGX Pharmaceuticals Inc. |
Eli Lilly & Co. |
43 |
12/17/07 |
BioMS Medical Corp.
(Worldwide rights of multiple sclerosis drug) |
Eli Lilly & Co. |
497 |
3/5/07 |
Hypnion Inc. |
Eli Lilly & Co. |
315 |
10/16/06 |
ICOS Corp. |
Eli Lilly & Co. |
2,459 |
| Total |
$9,916 |
| |
| Divestitures |
Date |
Target |
Seller |
Deal value ($mill.) |
8/5/08 |
Eli Lilly & Co.
(Greenfield Laboratories) |
Eli Lilly & Co. |
$50 |
8/30/07 |
Iconix Biosciences Inc. |
Eli Lilly & Co. |
33 |
| Total |
$83 |
|
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
