Earnings: Eli Lilly & Co (LLY), GlaxoSmithKline plc (GSK), Novartis AG

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Earnings: Eli Lilly & Co (LLY), GlaxoSmithKline plc (GSK), Novartis AG
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Three of the biggest pharmaceutical companies have announced their earnings today, for the first quarter of 2013. The profits for Eli Lilly & Co. (NYSE:LLY) and Novartis AG (NYSE:NVS) (VTX:NOVN) rose while GlaxoSmithKline plc (ADR) (NYSE:GSK) experienced a decline in profits. The earnings of all the three companies, in detail, are discussed below:

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Earnings: Eli Lilly & Co (LLY), GlaxoSmithKline plc (GSK), Novartis AG

Eli Lilly & Co. (NYSE:LLY) posted first quarter 2013 earnings today, which rose 53 percent fueled by a transfer of some commercial rights. The revenue came in flat, but there was a surge in the margin. Eli Lilly posted a profit of $1.55 billion or $1.42 a share, an increase from $1.01 billion, or 91 cents per share, in the corresponding quarter of the previous year. The earnings surged to $1.14 from 92 cents after excluding items such as a gain from transferring commercial rights, asset impairment and restructuring charges.

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The pharma company is currently going through their patent expiration issues due to which the sales have been affected. The company has lost the patent for its major product Antipsychotic Zyprexa, in October 2011, which was the number one drug in its category. Eli Lilly & Co. (NYSE:LLY) will also lose the patent protection for antidepressant Cymbalta in December.

Eli Lilly & Co. (NYSE:LLY) is making efforts to expand itself and come up with some new products through acquisitions. The drug maker has been doing research and is looking forward to collaboration with other prominent pharma companies.

GlaxoSmithKline plc (ADR) (NYSE:GSK) saw its first quarter profit decline by 6 percent after the products it divested. The earning for the UK’s largest drug maker declined to 1.93 billion pounds ($2.95 billion), or 26.9 pence a share, compared to 2.05 billion pounds, or 26.9 pence, in the previous fiscal. The earnings beat the 25.2-pence average of 14 analysts’ estimates compiled by Bloomberg.

GlaxoSmithKline plc (ADR) (NYSE:GSK) posted a decline in sales by 3 percent to 6.47 billion pounds. The sales declined as the company sold 17 over the counter products to Prestige brand holdings Inc. The promotion, which was taken over by Astella Pharma Inc for the overactive bladder treatment VESIcare, has also hit the sales hard.

Presently, GlaxoSmithKline plc (ADR) (NYSE:GSK) is waiting a regulatory decision related to six drugs and expects that it will boost its sales and earnings per share by 3 percent to 4 percent.

Novartis AG (NYSE:NVS) (VTX:NOVN) posted an increase in profit by 7 percent for the first quarter of 2013. The earnings for the drug maker came in at $3.25 billion, according to the statement released by the company. Earnings beat the $3.12 billion average estimates of analysts.

Novartis AG (NYSE:NVS) (VTX:NOVN), the biggest drug maker in Europe, drew benefits from the failure of Ranbaxy Laboratories Limited (NSE:RANBAXY), which could not market the identical version of Diovan hypertension drug.

The drug maker announced that Jonathan Symonds, the Chief Financial Officer of Novartis AG (NYSE:NVS) (VTX:NOVN) will step down from the post, and Harry Kirsch, 48, who currently is the head of finance of Novartis’ drug unit will replace Symonds.

Novartis AG (NYSE:NVS) (VTX:NOVN) maintained its estimates of mid single digit decline in profit this fiscal and said that sales will be almost the same as in fiscal 2012 after excluding currency swings.

Novartis AG (NYSE:NVS) (VTX:NOVN) did not ignore the threat posed by the generic medicines and said that sales will be affected by $3.5 billion in 2013.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@wordpress-785388-2679526.cloudwaysapps.com
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