Eli Lilly & Co., (NYSE: LLY) reported that its first-quarter net income slipped 15% to $1.06 billion, or 95 cents a share, from $1.25 billion, or $1.13, in the year-earlier quarter. On an adjusted basis, the company earned $1.24 in the latest quarter. Revenue rose to $5.84 billion from $5.49 billion. Analysts, on average, expected the company to report earnings of $1.16 per share on revenue of $5.70 billion.
For 2011, Lilly affirmed that it expects to earn an adjusted $4.15 to $4.30 a share in 2011. Reported earnings now should come in at $3.86 to $4.01.
"Lilly started the year by delivering solid financial results as we continue to advance the next wave of potential new medicines in our pipeline," said John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer. "Growth in international markets and the strong performance of Cymbalta, Alimta and our animal health business drove volume-based revenue growth of six percent, despite a significant decline in Gemzar sales due to generic competition. This revenue growth allowed us to make necessary investments in research and development to address the challenges of upcoming patent expirations. We are on track to deliver on our 2011 headcount and expense reduction targets, as well as our goal of having at least ten potential new medicines in Phase 3 clinical development by the end of this year."
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