Lilly books 21% income growth for Q2

Eli Lilly has reported its financial results, recording $1.16 billion for the 2009 second quarter, compared with $958 million in the year-ago quarter--an increase of 21 percent.

In the second quarter of 2009, the Indianapolis-based company said its global total revenue was $5.3 billion, an increase of 3 percent compared with the second quarter of 2008. The 3 percent revenue growth was comprised of a 6 percent increase due to higher volume and a 3 percent increase due to higher prices, partially offset by a 7 percent decline due to the impact of foreign exchange rates. Of the total $5.3 billion in  revenue, $5.11 billion was comprised of product sales, an increase of 2 percent, as well as collaboration and other revenues of $179.5 million--an increase of 54 percent.

Marketing, selling and administrative expenses were essentially flat at $1.7 billion, Lilly said. The results were impacted favorably by the movement of foreign exchange rates and a reduction in U.S. advertising expenses, offset by the impact of the ImClone acquisition and increased Effient pre-launch activities. Research and development expenses were $1.04 billion, or 20 percent of total revenue.

Compared with the second quarter of 2008, research and development expenses grew 9 percent due primarily to the ImClone acquisition and increased late-stage clinical trial and discovery research costs, partially offset by the impact of foreign exchange rates. Overall, total operating expenses, defined as the sum of research and development, marketing, selling and administrative expenses, increased 4 percent compared with the second quarter of 2008.

For the diabetes drug Byetta, Lilly recognized total revenue of $114.6 million--an increase of 13 percent, comprised of collaboration revenue of $79.9 million and product sales of $34.7 million. Global sales of Byetta were $205.7 million in the second quarter of 2009, a 6 percent increase compared with the second quarter of 2008, driven by growth in international markets. U.S. sales of Byetta declined 1 percent to $175.1 million compared with the second quarter of 2008, while sales of Byetta outside the U.S. were $30.6 million.

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