The discrepancy comes from the nearly $1.5 billion charge it had to take to settle improper marketing allegations for its antipsychotic Zyprexa. Other than that, Eli Lilly had a very fine quarter.
Sales were up 14% year over year. Sales of antidepressant and fibromyalgia treatment Cymbalta, Eli Lilly's second-biggest seller behind Zyprexa, jumped 40%. Compare that with other drugs that treat depression -- year over year, sales of GlaxoSmithKline's
To continue that success, Eli Lilly needs to win marketing approval for its blood clot preventer prasugrel. In June, the Food and Drug Administration pushed back its decision to the end of September, but there's still no decision from the agency, and management wasn't exactly sure when a decision would be made.
More long-term growth will need to come from the pipeline of recent acquisition ImClone Systems
I think we can expect more mixed news from Eli Lilly in the future. As it moves drugs through its pipeline, expect substantial growth, followed by patent expirations and slumping sales. Hopefully, the stock price won't be on too much of a roller coaster.
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