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Eli Lilly and Company Reports Strong Financial Results for the Second Quarter of 1998

Strategic Insights

— 2 min read

Eli Lilly and Company has announced its financial results for the second quarter of 1998, showing significant growth across various product lines and regions. The company's worldwide sales increased by 18 percent to $2.341 billion, with operating income rising by 14 percent to $641.8 million. Net income and diluted earnings per share for the quarter were $491.3 million and $.44, respectively, representing increases of 18 percent and 19 percent over the normalized results of the second quarter of 1997.

The company's pharmaceutical product sales were a key driver of growth, with sales increasing by 19 percent to $2.204 billion. Prozac sales grew by 12 percent to $666.4 million, driven by a 16 percent increase in the U.S. market. Zyprexa sales more than doubled to $327.9 million, while ReoPro sales increased by 69 percent to $101.0 million.

Lilly's investment in research and development increased by 28 percent to $418.7 million, as the company continued to build its internal and external capabilities. The company also made progress in its pipeline, with several products in various stages of development, including a new proprietary Prozac formulation and at least one combination of Prozac with another proprietary drug.

Key Takeaways:

  • Worldwide sales increased by 18 percent to $2.341 billion, driven by growth in pharmaceutical product sales and international markets.
  • Operating income rose by 14 percent to $641.8 million, with gross margins improving by 0.9 percentage points to 73.3 percent.
  • Net income and diluted earnings per share for the quarter were $491.3 million and $.44, representing increases of 18 percent and 19 percent over the normalized results of the second quarter of 1997.
  • Pharmaceutical product sales increased by 19 percent to $2.204 billion, with Prozac, Zyprexa, and ReoPro driving growth.
  • Investment in research and development increased by 28 percent to $418.7 million, with a focus on building internal and external capabilities.
  • The company launched Evista in the first quarter, which had sales totaling $15.2 million, with preliminary data showing a 50 percent reduction in breast cancer incidence among women enrolled in ongoing osteoporosis studies.
  • Worldwide sales of animal health products increased by 6 percent, with sales growth led by Micotil.

Statistics:

  • Worldwide sales: $2.341 billion (up 18 percent)
  • Operating income: $641.8 million (up 14 percent)
  • Gross margins: 73.3 percent (up 0.9 percentage points)
  • Net income: $491.3 million (up 18 percent)
  • Diluted earnings per share: $.44 (up 19 percent)
  • Pharmaceutical product sales: $2.204 billion (up 19 percent)
  • Prozac sales: $666.4 million (up 12 percent)
  • Zyprexa sales: $327.9 million (up 110 percent)
  • ReoPro sales: $101.0 million (up 69 percent)
  • Research and development investment: $418.7 million (up 28 percent)

Sources:

  • Eli Lilly and Company financial release, July 22, 1998
  • PR Newswire, "Eli Lilly and Company Announces Financial Results for the Second Quarter of 1998"
  • Company website, Lilly.com
  • Form 10-Q, filing date May 1998

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