Suffering from generic competition and patent losses, Eli Lilly & Co. froze salaries and cut bonuses last year--from the top management ranks on down. But the decreases in incentive pay didn't make a huge dent in those executive pay packages.
U.S. lawmakers have asked the U.S. Trade Representative's office to put Canada on a "priority watch list" because it has invalidated patents on drugs made by Eli Lilly and others.
Eli Lilly's patent cliff has struck again, but some analysts found things weren't as bad as they expected when they surveyed the damage Thursday morning. Higher sales of other drugs offset much of the generic competition to newly off-patent Cymbalta, helping the pharma giant beat Wall Street's revenue forecasts by a long shot.
Lechleiter recently pointed to animal health as well as key therapeutic areas like neurosciences, diabetes and cancer, according to a report from Reuters.
"This will be Eli Lilly's most financially challenging year." That is the message that Eli Lilly CEO John Lechleiter started off his presentation with Tuesday to a room full of apt listeners at the J. P. Morgan Healthcare Conference before segueing into how the company's pipeline will move it past troubled times.
Once again, Eli Lilly is promising that tomorrow is another day. With its 2014 guidance, the Indianapolis-based drugmaker sticks to its $3 billion earnings target but puts revenue for the year at $19.2 billion to $19.8 billion, less than the $20 billion CEO John Lechleiter called "minimum" late last year.
Lechleiter tells The Wall Street Journal that he sees "the light at the end of the tunnel," but if pipeline failures continue, then cuts would have to follow.
Some analysts wanted to know what Lilly's Plan B is, given the fresh wave of generic competition that's about to hit its biggest franchise. What happens if Lilly's current crop of late-stage drugs--frequently touted at the top as one of the biggest and best in the industry--fails to deliver soon?
Eli Lilly rattled analysts today with a cautionary note on some growing market pressures that will make it difficult to hit its $20 billion revenue projection for 2014, which is intended to be its trough year as generic competition combined with a long drought of meaningful new drug approvals combine to take a heavy toll.
Eli Lilly's CEO John Lechleiter was out for a couple of months as he dealt with some heart issues. He recently returned and guess what he brought with him? More bad news for employees.