In this news, we discuss the Eli Lilly profit misses estimates on weak demand, higher costs.
(Reuters) – Eli Lilly and Co LLY.N missed analysts’ expectations for third-quarter earnings on Tuesday amid falling demand for some of its drugs and rising costs of developing COVID treatments- 19.
The drugmaker has said it expects COVID-19 research and development spending in 2020 to be around $ 400 million, which will lower its shares by 4% before the bell d ‘opening.
Lilly’s results come a day after she said no more COVID-19 hospital patients would receive her experimental antibody treatment, based on data suggesting the therapy was unlikely to help these patients recover.
The company has submitted emergency use clearance applications to the US regulator for its antibody treatment, bamlanivimab, as well as its arthritis drug, baricitinib.
Net income fell to $ 1.21 billion, or $ 1.33 per share, in the quarter ended Sept. 30, from $ 1.25 billion, or $ 1.37 per share, a year earlier .
Excluding items, the drugmaker gained $ 1.54 per share, below analysts’ average estimate of $ 1.71 per share, according to IBES estimates from Refinitiv.
Report by Ankur Banerjee in Bengaluru; Edited by Saumyadeb Chakrabarty
Original © Thomson Reuters
Originally posted 2020-10-27 14:06:09.