Thursday, September 25, 2003
Tuesday, September 23, 2003
Friday, September 12, 2003
The Merck Druggernaut: The Inside Story of a Pharmaceutical Giant
Excellent resource on the pharmaceutical industry. Fran Hawthorne has done a good job writing about issues affecting all big pharmaceutical companies. She raises legitimate questions about some of the industry marketing practices. She portrays Merck as historically superior in good business practices and good public relations. However, Merck may not be able to replace profits from older drugs as patents expire, and that makes staying "one of the good guys" more difficult. They are becoming more defensive about patent expirations (as other companies have been) and more aggressive with marketing. It seems its may no longer be able to depend on the "pipeline" of drugs from research and development to maintain its profitability. The book seems to warn of difficult times ahead, with profitability outweighing all other factors in new drug development.
Amazon.com: Books: The Merck Druggernaut: The Inside Story of a Pharmaceutical Giant
Amazon.com: Books: The Merck Druggernaut: The Inside Story of a Pharmaceutical Giant
Sunday, September 07, 2003
Eli Lilly raises earnings forecast
By Juliann Walsh / Bloomberg News
Eli Lilly & Co., the maker of Prozac antidepressant pills, raised its 2003 earnings forecast on demand for psychiatric medications including Zyprexa for schizophrenia and new drugs such as Cialis to treat impotence.
Lilly now expects full-year net income of at least $2.32 a share, Chief Financial Officer Charles Golden told investors at a meeting in New York. That's compared with the Indianapolis- based company's previous estimate of $2.27 to $2.37 a share.
Chief Executive Sidney Taurel is counting on new medicines to boost earnings as Zyprexa, Lilly's top-selling product with $3.69 billion in sales last year, faces pressure from competitors such as Bristol-Myers Squibb Co.'s Abilify. Demand for Cialis, under review for U.S. approval, has exceeded expectations in the countries where it's been introduced, the company said.
"Lilly has one of the best new product lines in the industry," said Samuel Isaly, manager of the Eaton Vance Worldwide Health Sciences Fund, which owns about 1.9 million Lilly shares. Cialis and Strattera for attention-deficit disorder "will become billion-dollar drugs."
The company had net income of $2.50 a share last year. This year's profit will be hurt by costs taken in the first quarter to cut jobs and write down the value of assets, Lilly has said.
Shares of Lilly slipped 4 cents to $61 as of 4 p.m. in New York Stock Exchange composite trading. They've risen 8.5 percent in the past 12 months, beating a 1 percent gain in the 12-member Standard & Poor's 500 Pharmaceuticals Index. Pfizer Inc., the world's biggest drugmaker, this week reduced estimates for 2003 because of costs for the company's acquisition of Pharmacia Corp.
Taurel said he plans to add sales representatives to promote new products. Lilly's global sales force will climb to 17,500 by the end of 2004 from about 14,500 now, he said in an interview.
In addition to the recent introductions of Cialis, Strattera and Forteo for osteoporosis, Lilly said it's preparing to roll out four new products, including Alimta for cancer and Symbyax for bipolar disorder. The company said it expects to have four drugs with annual sales of more than $1 billion by the end next year, compared with just one now.
"Lilly is suffering less" than rivals such as Merck & Co. and Pfizer from expiring patents, said Victor Polak, who helps oversee $250 million in assets at Citigroup Asset Management. The Food and Drug Administration has been reviewing plants in Indianapolis after Lilly failed two previous inspections. The agency has refused to approve the company's new drugs until the manufacturing issues are resolved.
"We believe the FDA is in the final stages of its overall assessment," Taurel said in the statement. "We expect to have more clarity during the fourth quarter."
Taurel added that the company would give 2004 earnings forecasts in January, after the FDA offers its decision on Cymbalta approval.
Eli Lilly & Co., the maker of Prozac antidepressant pills, raised its 2003 earnings forecast on demand for psychiatric medications including Zyprexa for schizophrenia and new drugs such as Cialis to treat impotence.
Lilly now expects full-year net income of at least $2.32 a share, Chief Financial Officer Charles Golden told investors at a meeting in New York. That's compared with the Indianapolis- based company's previous estimate of $2.27 to $2.37 a share.
Chief Executive Sidney Taurel is counting on new medicines to boost earnings as Zyprexa, Lilly's top-selling product with $3.69 billion in sales last year, faces pressure from competitors such as Bristol-Myers Squibb Co.'s Abilify. Demand for Cialis, under review for U.S. approval, has exceeded expectations in the countries where it's been introduced, the company said.
"Lilly has one of the best new product lines in the industry," said Samuel Isaly, manager of the Eaton Vance Worldwide Health Sciences Fund, which owns about 1.9 million Lilly shares. Cialis and Strattera for attention-deficit disorder "will become billion-dollar drugs."
The company had net income of $2.50 a share last year. This year's profit will be hurt by costs taken in the first quarter to cut jobs and write down the value of assets, Lilly has said.
Shares of Lilly slipped 4 cents to $61 as of 4 p.m. in New York Stock Exchange composite trading. They've risen 8.5 percent in the past 12 months, beating a 1 percent gain in the 12-member Standard & Poor's 500 Pharmaceuticals Index. Pfizer Inc., the world's biggest drugmaker, this week reduced estimates for 2003 because of costs for the company's acquisition of Pharmacia Corp.
Taurel said he plans to add sales representatives to promote new products. Lilly's global sales force will climb to 17,500 by the end of 2004 from about 14,500 now, he said in an interview.
In addition to the recent introductions of Cialis, Strattera and Forteo for osteoporosis, Lilly said it's preparing to roll out four new products, including Alimta for cancer and Symbyax for bipolar disorder. The company said it expects to have four drugs with annual sales of more than $1 billion by the end next year, compared with just one now.
"Lilly is suffering less" than rivals such as Merck & Co. and Pfizer from expiring patents, said Victor Polak, who helps oversee $250 million in assets at Citigroup Asset Management. The Food and Drug Administration has been reviewing plants in Indianapolis after Lilly failed two previous inspections. The agency has refused to approve the company's new drugs until the manufacturing issues are resolved.
"We believe the FDA is in the final stages of its overall assessment," Taurel said in the statement. "We expect to have more clarity during the fourth quarter."
Taurel added that the company would give 2004 earnings forecasts in January, after the FDA offers its decision on Cymbalta approval.
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