In this news, we discuss the Lilly profit hit by COVID-19 drug development costs, weak demand.
(Reuters) – Eli Lilly and Co LLY.N did not meet analysts’ expectations for third-quarter earnings on Tuesday due to rising costs of developing COVID-19 therapies and falling demand for some of its main medications, including Trulicity diabetes treatment.
Lilly is one of the few companies in the race to develop a treatment for COVID-19 and has applied for emergency use authorization for its antibody therapy for mild to moderate patients as well as its arthritis medication, baricitinib.
The results come a day after the company said no more COVID-19 hospital patients would receive their treatment, as data from a government-led trial suggested the therapy was unlikely to help these patients with get well.
The trial was put on hold earlier in the month due to safety concerns. The drugmaker said on Tuesday that further antibody treatment trials against the coronavirus, bamlanivimab, remain on track.
He said more than 1,000 volunteers had been tested in his clinical trial studying bamlanivimab as monotherapy and in combination with another drug in people recently diagnosed with COVID-19 in an outpatient setting.
Lilly said she expects 2020 COVID-19 research and development spending to be around $ 400 million, leading to a 4% drop in her shares before the opening bell . Overall operating expenses increased 9% to $ 3.04 billion in the third quarter.
Excluding items, the drugmaker gained $ 1.54 per share, below analysts’ average estimate of $ 1.71 per share, according to IBES estimates from Refinitiv.
Revenue rose 5% to $ 5.74 billion in the quarter ended Sept. 30, but remained below the average estimate of $ 5.88 billion.
Lilly said he still projects 2020 revenues to be between $ 23.7 billion and $ 24.2 billion.
He cautioned, however, that reaching the upper end of the range would likely require the inclusion of moderate income from potential COVID-19 treatments, which is possible but not certain at this point.
Report by Ankur Banerjee in Bengaluru; Edited by Saumyadeb Chakrabarty
Original © Thomson Reuters
Originally posted 2020-10-27 06:06:11.