Lilly Swings to Loss on ImClone Costs

Updated from 7:24 a.m. EST

Eli Lilly(LLY Quote) swung to net loss in the fourth quarter from a year-earlier profit primarily because of costs related to the acquisition of ImClone Systems.

The Indianapolis-based drug maker said the fourth-quarter loss totaled $3.62 billion, or $3.31 a share, compared with net income of $854.4 million, or 78 cents a share, in the year-earlier quarter.

Lilly recorded a pretax charge of $4.73 billion in the fourth quarter related to the $6.5 billion purchase of the biotech firm ImClone.

Excluding this charge and others totaling $4.38 a share, Lilly said adjusted net income rose 19% in the quarter to $1.07 a share. Wall Street's consensus estimate for Lilly's adjusted fourth-quarter earnings was $1.05 a share.

Total sales in the quarter were flat at $5.21 billion compared with a year earlier. U.S. sales grew 3%, while sales outside the U.S. fell 3%.

Sales of the antipsychotic drug Zyprexa fell 10% to $1.15 billion from $1.27 billion in the year-earlier quarter, driven down by lower demand, the company said.

The antidepressant Cymbalta saw fourth-quarter sales rise 15% to $721 million from $628 million one year ago.

Sales of the diabetes drug Byetta totaled $186.6 million in the quarter, a 2% increase year over year. U.S. sales of the drug, however, decreased 8% to $162.7 million, hurt by safety concerns that arose during 2008. Lilly co-markets Byetta with Amylin Pharmaceuticals(AMLN Quote), which reported lower-than-expected fourth quarter revenue Wednesday.

An advisory committee of the Food and Drug Administrations meets Feb. 3 to review prasugrel, Lilly's new blood thinning drug. Approval of the drug, which could bring in $1 billion in annual revenue, already has been delayed twice.