Eli Lilly returns to profit in 2009, with strong 2009 4th quarter

US drug major Eli Lilly yesterday reported earnings of $915.4 million, or $0.83 per share for the fourth quarter of 2009, compared with a loss of $3.63 billion, or $3.31 per share, in the same period a year earlier, when the company took a substantial charge for the buyout of cancer drugmaker ImClone Systems. A Thomson Reuters survey of analysts had forecast fourth-quarter earnings at $0.92 a share and $5.68 billion in revenue and Lilly shares fell 2.3%to $35.55 in Thursday morning trading.

Sales for the quarter rose 14% to $5.93 billion, comprised of a 7% increase due to higher volume, 3% from higher prices and 3% as a result of foreign exchange rates (numbers do not add due to rounding). Unlike some of its peers reporting results, Lilly did well in the domestic market, where revenue increased 11% to $3.261 billion due to higher prices and wholesaler buying patterns. Total revenue outside the USA rose 1% to $2.673 billion due to increased demand and the positive impact of foreign exchange rates, partially offset by lower prices.

For the full-year 2009, worldwide total revenue increased 7% to $21.836 billion compared with 2008. Total sales in the USA rose 12 % to $12.294 billion and outside the country edged up just 1% to $9.542 billion due to increased demand, partially offset by the negative impact of foreign exchange rates and lower prices. Full year earnings were $4.33 billion, or $3.94 per share, compared with a loss of $2.07 billion, or $1.89 per share, in 2008.