Pharmaceutical company Eli Lilly & Co. (NYSE: LLY) is planning to cut 5,500 jobs over the next few years and reorganize into five business units. The company is looking to reduce costs and accelerate how long it takes new drugs to get to market, especially as its top performers see their patents expire. This translates to a workforce reduction of close to 14% - to 35,000. This measure doesn't include new positions in emerging markets with high potential and Japan.

The company hopes to cut as much as possible through attrition and retirements - and it would not indicate how many other positions would have to be cut.

Eli Lilly's goal is to slash its annual cost by $1 billion during this restructuring. The new business units will be: cancer, diabetes, established markets, emerging markets and Elanco, which is its animal health business. This is a change from the existing functional model, which separates U.S. and global marketing for each drug in the company's portfolio. Through the new structure, Lilly says, drug development and marketing will be tied more closely.

Continue reading Eli Lilly to restructure, bet on drug portfolio

Eli Lilly to restructure, bet on drug portfolio originally appeared on BloggingStocks on Tue, 15 Sep 2009 10:40:00 EST. Please see our terms for use of feeds.

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Time to scoop up some shares of Lilly originally appeared on BloggingStocks on Mon, 08 Jun 2009 18:00:00 EST. Please see our terms for use of feeds.

Eli Lilly (NYSE: LLY), a company that makes money by treating depression, raised the spirits of Wall Street today, Eli Lilly exceeded analyst expectations for second quarter earnings and raised its projections for the rest of the year.

After backing out the acquisition cost of Hypnion Inc. and Ivy Animal Health, adjusted earning hit $0.90 per share, compared to expectations in the $0.80-0.82 range. The company also raised its 2007 year-end projection for adjusted earnings to $3.40-3.50, slightly above analyst expectations.

Strong quarterly earnings were attributed in part to the sales of anti-depressant drug Cymbalta, up 67% to over $500 million, Zyprexa, up 9% to $1.2 billion, and Cialis, that is still swelling worldwide. Recently announced results of studies that found little or no relationship between the SSRI class of antidepressants and birth defects have also strengthened the company's outlook.

However, many of the reservations Bloggingstocks' Victoria Erhart expressed a few months ago still remain valid, and the long-term health of the pharmaceutical company may be dependent on restocking a less than burgeoning drug pipeline.

The stock took a jump on news of the earnings report, up over $1, or more than 2%, in midday trading.

Eli Lilly earnings pleasantly surprise originally appeared on BloggingStocks on Tue, 24 Jul 2007 13:39:00 EST. Please see our terms for use of feeds.

Drug manufacturer Eli Lilly & Co. (NYSE: LLY) has got serious problems that go beyond its lackluster first quarter earnings.

During the first quarter.profit fell 39%, despite the fact that revenues rose 14%.. In spite of the fall-off in profits, management has raised full-year sales projections, and expects earnings of $2.63-$2.73 for the year. But that's only part of the story.

Eli Lilly recently yanked its European application to sell Arxxant, a drug to reduce diabetes-related eye diseases. Scaling back additional European operations incurred charges of $0.08 per share. Lilly still faces more than 1,000 lawsuits related to use of its antipsychotic drug Zyprexa. The legal bill for this drug has already surpassed the $1 billion mark. The end is not yet in sight as Lilly continues to sell the drug in selected markets.

Additional worrisome news is that Lilly does not have a robust drug pipeline. There aren't many drugs in advanced stages of the approval process. Its next big drug to market might be prasugrel, useful in treating heart disease. This drug is only in preliminary trials.

Lilly figures if it cannot produce its own drugs, it can acquire them from others. Lilly bought Icos Corporation in 1Q 2007 for $2.3 billion, $0.29 per share in charges. It is too soon to tell whether this acquisition was a bargain or an additional liability.

In what may be a snapshot of modern American society, two of Eli Lilly's top selling drugs are Cymbalta, used to treat anxiety disorder, and Cialis, used to treat erectile dysfunction. Sales of the anti-depressant Cymbalta rose 89% to $441.8 million. Sales of Cialis were up 19% to $265.8 million for the quarter.

Eli Lilly's problems go beyond quarterly results originally appeared on BloggingStocks on Wed, 25 Apr 2007 16:33:00 EST. Please see our terms for use of feeds.