Eli Lilly and Co. Beats Earnings, Misses On Revenues

Eli Lilly and Co reports earnings for Q4FY14, misses on revenues as patents for its prominent drugs expire and a stronger dollar being the culprit.

Eli Lilly and Co (NYSE: LLY) published its final quarter earnings for the fiscal year 2014. Indiana based pharmaceutical company reported earnings of 75 cents beating Street speculations by two cents. The company reported 74 cents in the same quarter last year.

However, revenues were less than impressive at $5.12 billion missing analyst speculations by $80 million, analysts had expected revenues to be at the $5.2 billion mark. Registering a Year-on-Year decline of almost 12% from the previous year when Lilly reported revenues of $5.80 billion.

The drug maker cites fluctuating foreign -exchange to stress its sensitive revenues figures; a stronger dollar is making Lilly’s drugs less economical for international buyers. Lilly adjusted its outlook on the full year’s revenue by scaling back from a $20.3 billion to $20.8 billion range to a range of $19.5 billion to $20 billion; the company actually reported $19.61 billion in full year’s revenue by observing a negative YoY change of 15%.

Another factor leading to bleak revenues is as its prominent drugs see expiring patents which eventually affect the bottom line. Lilly saw revenues slide on the back of patent expiration of Evista and Cymbalta by 74% and 58% respectively.

In turn the drug maker has resorted to widening its research and development to work with new drugs, it was reported that the drug maker has agreed to work in partnership with Merck Co., Inc. (NYSE: MRK) and Bristol-Myers Squibb Co (NYSE: BMY) to develop immunotherapy drugs.

Investor sentiment is definitely bullish as share prices are on the green, as of 12:11 PM EST shares are traded at $72.45 per share.

The pharmaceutical manufacturing and developing company basically deals in two segments of the products which they discover, create and distribute. The two segments of health which they cater are animals and humans. The Company distributes and manufactures its products through the facilities that are being provided to them in the United States, along with 12 other countries. The company's animal health business gets operated through the pharma company's Elanco division, which helps in its development, manufacturing and market products. The products, medicines or drugs which the company creates, caters both; food animals as well as companion animals.

Earnings for the first quarter, fiscal year 2015 are expected to be released on the 23rd April 2015. The pharmaceutical company closed up at $70.84 on the stock market as of on March 17th.