Eli Lilly & Co. (LLY) Financial News - Novo Nordisk Raises 2011 Sales, Profit Forecasts on Higher Victoza Revenue

Eli Lilly & Co. (LLY)

Novo Nordisk Raises 2011 Sales, Profit Forecasts on Higher Victoza Revenue

Quote: Eli Lilly & Co. (LLY) and Sanofi in sales of insulin. The Danish company is betting on degludec, an experimental long-acting insulin, to help it wrest back market share, Chief Financial Officer Jesper Brandgaard said. “To reignite growth in the more advanced insulin sphere we need degludec,” Brandgaard said in a telephone interview. Novo expects U.S. approval of degludec in the second half of next year or early 2013, he said. Novo, the world’s largest insulin maker, fell 9 kroner, or 1.5 percent, to 599 kroner in Copenhagen trading, after rising as much as 3.5 percent. The stock has lost 3.3 percent this year including reinvested dividends, compared with a 4.7 percent return for the Bloomberg Europe Pharmaceutical Index. Estimates Missed Net income climbed to 4.13 billion kroner ($790 million) from 3.55 billion kroner a year earlier. Analysts predicted profit of 4.32 billion kroner, the average of 12 estimates compiled by Bloomberg. Sales rose 3.9 percent to 16 billion kroner, missing the average analyst estimate of 16.4 billion kroner. In krone, the company is predicting full-year sales growth of between 6 percent and 8 percent, in line with the average analyst forecast of 8 percent. That’s the slowest annual growth in four years. Second-quarter sales of Victoza, which mimics a hormone called GLP-1 and stimulates natural insulin production, climbed to 1.25 billion kroner from 296 million kroner a year earlier, beating the average estimate of 1.21 billion kroner. Sales of modern insulins grew 8 percent in the first half, compared with 22 percent in the same period last year. Revenue from human insulins fell 10 percent. GermanySpainTurkey, and by the loss of contracts in the U.S., where Lilly has been pursuing an “aggressive” pricing strategy, Chief Executive Officer Lars Rebien Soerensen said on a conference call with analysts. China Novo began selling Victoza i...
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Eli Lilly & Co. Stock Summary

Eli Lilly and Company develops, manufactures, and sells pharmaceutical products worldwide. It offers neuroscience products to treat schizophrenia, manic episodes, and bipolar maintenance; depression and diabetic peripheral neuropathic pain; attention-deficit hyperactivity disorder in children, adolescents, and adults; depression, bulimia nervosa, and obsessive-compulsive disorders; and bipolar depression. The company?s endocrinology products are used for diabetes; type 2 diabetes; osteoporosis in postmenopausal women; osteoporosis in postmenopausal women and men at high risk for fracture; and human growth hormone deficiency and idiopathic short stature. It also provides oncology products to prevent pancreatic, metastatic breast, non-small cell lung, ovarian, and bladder cancers; malignant pleural mesothelioma; and colorectal cancers, as well as offers cardiovascular products for treating erectile dysfunction, atherothrombotic events in patients with acute coronary syndromes undergoing percutaneous coronary invention and adults with severe sepsis at high risk of death. In addition, the company offers animal health products, such as cattle feed additives; antibiotics used to treat respiratory diseases and other diseases in cattle, swine, and poultry; protein supplements to improve milk productivity in dairy cows; anticoccidial agents for use in poultry; antibiotics used to control enteric infections in calves and swine; parasiticides for use on cattle and premises; and products that prevents flea infestations on dogs, as well as other pharmaceutical products to treat staphylococcal infections and bacterial infections. Eli Lilly distributes its products principally through independent wholesale distributors, as well as directly to pharmacies. It has a strategic alliance with MacroGenics, Inc.; and licensing and development agreements with TransPharma Medical Ltd. and BioMS Medical Corp. The company was founded in 1876 and is based in Indianapolis, Indiana.