Eli Lilly 4Q earnings rise sharply

INDIANAPOLIS - The drugmaker Eli Lilly & Co. said Tuesday its fourth-quarter profit surged from a year-ago period that included hefty restructuring costs and liability charges related to its top-selling drug, Zyprexa.

The results beat analysts' expectations and its shares rose more than 3 percent in premarket trading.

For the quarter ended Dec. 31, the Indianapolis-based company earned $854.4 million, or 78 cents per share, compared with $132.3 million, or 12 cents per share, a year ago. Excluding certain restructuring and acquisition charges, adjusted earnings rose 10 percent to 90 cents per share from 82 cents per share.

Revenue rose 22 percent to $5.19 billion from $4.25 billion, benefiting partly from a 10 percent rise in Zyprexa sales.

The results beat estimates by analysts polled by Thomson Financial, who forecast profit of 89 cents per share on $4.81 billion in revenue.

Lilly shares rose $1.55 to $52.95 in premarket trading Tuesday.

During the fourth-quarter of 2006, Lilly recorded $945 million in one-time charges for the closure of several manufacturing facilities and for a legal settlement over the anti-psychotic Zyprexa.

Zyprexa recorded $1.3 billion in sales during the fourth quarter of 2007, a 10 percent increase from the last quarter of 2006. The depression treatment Cymbalta recorded another strong quarter, with sales rising 48 percent to $628 million.

Lilly had six drugs pass the billion-dollar mark in full-year sales in 2007. Zyprexa topped the list with full-year sales rising 9 percent to $4.8 billion.

Cymbalta saw its full-year sales rise 60 percent on strong demand and increased prices to $2.1 billion. The erectile dysfunction drug Cialis recorded $1.2 billion in sales, a 25 percent increase over 2006.

Other drugs passing $1 billion in sales included Gemzar, Humalog and Evista.

"Our additional investment in sales and marketing helped fuel accelerated double-digit sales growth this quarter, which was once again driven mainly by volume," said Sidney Taurel, chairman and chief executive.

For the full year 2007, Lilly earned $2.95 billion, or $2.71 a share, up from $2.66 billion, or $2.45 a share, a year ago. Revenue rose to $18.6 billion from $15.7 billionn a year ago.

The company affirmed its full-year 2008 adjusted earnings guidance in the range of $3.85 to $4 per share. Analysts expect earnings of $3.88 per share for 2008.