Lilly Reports Fourth-Quarter and Full-Year 2013 Results

Eli Lilly and Company has announced financial results for the fourth quarter and full year of 2013.

• Fourth-quarter 2013 revenue declined 2% driven by Cymbalta US patent expiration, partially offset by growth in other products.

• Fourth-quarter 2013 earnings per share were $0.67 (reported), or $0.74 (non-GAAP).

• Full-year 2013 revenue increased 2% to $23.1 billion.

• Full-year 2013 earnings per share totaled $4.32 (reported), or $4.15 (non-GAAP).

• Approximately $3.8 billion in cash was returned to shareholders in 2013 through dividends and share repurchases.

• 2014 EPS guidance confirmed to be in the range of $2.77 to $2.85.
 

"Lilly's fourth-quarter 2013 results reflect the initial impact from the US patent expiration for Cymbalta. The loss of the Cymbalta patent, along with the expiration of the US patent for Evista in March of this year will result in a substantial decline in revenue and earnings in 2014," said John C. Lechleiter, PhD, Lilly's chairman, president and chief executive officer. "Yet, far from seeing 2014 as a trough year for Lilly, we see it as a moment of tremendous opportunity. We anticipate launching several new medicines this year and returning our company to growth in 2015 and beyond."

Key Events During the Last 3 Months

• US patent exclusivity for Cymbalta expired on 11 December 2013, resulting in the entry of several generic competitors.

• As part of its previously-announced share repurchase programme, the company repurchased approximately $500 million in company stock in the fourth quarter of 2013. For the full-year 2013, the company returned approximately $3.8 billion in cash to shareholders through its dividend and share repurchase programme.

• The company and its alliance partner, Boehringer Ingelheim, announced that FDA accepted the filing of the New Drug Application for LY2963016, an investigational basal (long-acting) insulin. This new insulin glargine product was also submitted in Japan.

• The company acquired all development and commercial rights from Arteaus Therapeutics for a calcitonin gene-related peptide (CGRP) antibody as a potential treatment for the prevention of frequent, recurrent migraine headaches, following a successful Phase II proof-of-concept study.

• The company entered into a collaboration with Pfizer Inc. to co-develop and jointly commercialize tanezumab, a monoclonal antibody being investigated to treat moderate-to-severe chronic osteoarthritis pain, chronic low back pain, and cancer-related bone pain.

• The company announced that results from three Phase III studies of edivoxetine did not achieve the primary study objective of superior efficacy in depression after 8 weeks of treatment. While the safety and tolerability of edivoxetine were consistent with previous studies, the efficacy results do not support a regulatory submission for adjunctive treatment in patients with Major Depressive Disorder (MDD).

For full fincancial results, click here.