by Christopher Freeburn | October 24, 2012 11:34 am
Shares of Bristol-Myers Squibb (NYSE:BMY[1]) and Eli Lilly (NYSE:LLY[2]) fell in Wednesday morning trading after the pharmaceutical makers posted third-quarter results that missed Wall Street forecasts.
Eli Lilly announced that it earned $1.33 billion during the quarter[3], up 7% from last year. EPS came in at 79 cents, but that fell short of the 84 cents that Wall Street was expecting, Bloomberg noted. The drug-maker said that quarterly revenue tumbled 11% to $5.44 billion, which also disappointed analysts. The news sent Lilly shares down more than 2%.
Company officials attributed the revenue decline to generic competition to its anti-schizophrenia treatment, Zyprexa, whose patent protection ended last year. Company officials reiterated their full-year adjusted earnings forecast of between $3.30 and $3.40 a share, and warned that earnings would not increase again until at least 2015 as more drug patents expired.
A charge stemming from abandoned research, combined with plummeting sales of its leading blood-thinner drug, caused Bristol-Myers to post a quarterly loss[4] of $711 million, compared to a profit of $969 million in the same period last year. Without the charge, the company earned 41 cents a share, but that missed analysts who estimated an adjusted profit of 42 cents a share, the Associated Press noted.
Generic competition slashed sales of the company’s blood-thinner Plavix, which lost patent protection in May, by 96% compared to last year, and also slammed sales of two blood pressure medications. That sent quarterly revenue down 30% to $3.74 billion. That fell short of the $4 billion that analysts had expected. U.S. drug sales tumbled 43% to $2 billion.
Shares of Bristol-Myers dipped fractionally in Wednesday morning trading.
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