Pharmaceutical company, Eli Lilly & Co. (NYSE: LLY) edged up on Friday after the company said that fiscal 2013 earnings will beat Street’s estimate despite the fact that two of its key drugs will lose U.S. patent protection during this year.
The Indianapolis-based company said that adjusted earnings for 2013 are expected in the range of $3.75 to $3.90 a share on revenue of $22.6 billion to $23.4 billion.
Analysts’ consensus estimate was for earnings of $3.72 a share on revenue of $22.87 billion.
The company also reconfirmed its outlook on fiscal 2012.
The pharmaceutical company saw its revenue being impacted last year after it lost patent protection for one of its blockbuster medicine –antipsychotic Zyprexa. The company lost significant market share after cheaper generic versions intensified the competition. Zyprexa, which was top selling drug for Eli Lilly before the generics arrived, generated more than $5 billion in an annual revenue.
In 2013, the Company will lose its patent protection for insulin Humalog in May and antidepressant drug Cymbalta in December.
After Zyprexa, Cymbalta became the top-selling drug for Eli Lilly. For the first nine months of 2012, combined revenue from Humlog and Cymbalta was 44% of the total sales of $8.7 billion, in the U.S. market.
The Company said that it will offset contracting revenue from patent expirations by developing new drugs, implementing cost cutting measures and focusing on foreign markets including developing countries.
“At Lilly, we continue to implement the three primary elements of our strategy to bridge our current period of patent expirations and return to sustainable growth. We have made substantial progress in recent years and expect 2013 to continue that trend,” said John Lechleiter, President and CEO of Eily Lilly while speaking to analysts and investors.
Eli Lilly also maintained that net income in 2014 will be at least $3 billion and revenue will be no less than 20 billion.
The Company said that it expects to keep paying up dividends and looks to complete its share buyback program worth $1.5 billion in the current year.
Eli Lilly is scheduled to report its fiscal fourth-quarter and 2012 financial results on January 29.
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