Lilly Posts 3Q Profit; Analysts Doubt Future Sales

TOM MURPHY

INDIANAPOLIS (AP) — Eli Lilly & Co. turned a third-quarter profit as sales volume on several drugs climbed, but its newest drug and a possible key source of future revenue started slowly.

The results highlighted concerns about the Indianapolis company's plans to fill a giant revenue hole that will develop in coming years when drugs that account for more than half of its sales lose patent protection and become exposed to generic competition.

Lilly said its worldwide revenue rose 7 percent. Its top-seller, the anti-psychotic Zyprexa, brought in $1.2 billion, or 3 percent more than it did the same quarter last year. The company's second-best seller, the antidepressant Cymbalta, showed 10 percent growth.

Sales climbed 47 percent for cancer treatment Alimta, which benefits in part from its effectiveness with some lung cancer patients and fewer side effects than other chemotherapies.

"That's really been a phenomenal drug for Lilly and probably has a lot more growth and upside than people may be modeling today," Leerink Swann analyst Seamus Fernandez said.

But Zyprexa's patent expires in 2011, and protection for Cymbalta, Alimta and several other drugs will end a few years later.