Hard Times at Eli Lilly

Eli Lilly  (NYSE: LLY  ) recently announced layoffs of roughly one-third of its U.S. workforce. In this video, David Williamson explains why this was both necessary and smart. Several of its key drugs will lose patent protection in the next two years, which represents a third of its revenue and Eli Lilly had to do something to compensate. Most likely, Lilly will expand its workforce once several of its new drugs receives FDA approval. In fact, diabetes drugs are looking like an Eli Lilly forte, with six different drugs in various clinical trials.

So if you have faith in Eli Lilly's product pipeline, don't get rattled by the recent layoffs. Better times are ahead, so let its 3.5% dividend help tide you over.

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  • Report this Comment On April 13, 2013, at 5:12 AM, DannyHaszard wrote:

    Remember-Zyprexa (Olanzapine) Diabetes connection conflict of interest.

    Eli Lilly made $70 billion to date,paid $1.4 billion in criminal fines.

    Thousands got diabetes as Zyprexa side effect and have to take Lilly insulin to treat the diabetes that was caused by their Zyprexa.

    Eli Lilly Zyprexa can ruin your Pancreas and make you a type 2 diabetic in just a few months of use.I took it 1996-2000 and now am a diabetic for it.

    'Atypical' antipsychotic Zyprexa is the worst offender of them all.Google-Haszard Zyprexa - got a page up.

    -Daniel Haszard

  • Report this Comment On April 14, 2013, at 3:41 PM, cdkeli wrote:

    These are pathetic crocodile tears!! So they lay off 1/3 their US workforce and yet how many are they hiring overseas at a pittance of the cost??

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