Eli Lilly Reveals Probe

The drugmaker says U.S. prosecutors are investigating its sales and marketing practices.
Publish date:

Eli Lilly

(LLY) - Get Report

Thursday said U.S. prosecutors in Pennsylvania are investigating the company's marketing and promotional practices.

The Indianapolis-based drugmaker said it is cooperating in the investigation and based on the information provided by the U.S. Attorney's office, the company believes the products likely to be involved include Evista, Prozac and Zyprexa.

Lilly said it could not predict or determine the outcome of the investigation, but warned it was possible that "an adverse outcome could have a material adverse impact on the company's consolidated financial position, liquidity and results of operations."

The drugmaker earned $747.2 million, or 69 cents a share, on revenue of $3.47 billion in the fourth quarter, compared with $736.6 million, or 68 cents a share, on revenue of $2.96 billion a year ago. But excluding gains and charges, earnings fell 2% to $723.3 million, or 67 cents a share. Analysts were looking for earnings of 67 cents a share, excluding charges.

Shares closed at $66.49 Wednesday.