Lilly climbs out of losses in Q4, FY2009

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Eli Lilly has reported its 2009 fourth quarter and fiscal year financial returns, reversing net losses into substantial net income gains.

The Indianapolis-based company reported a net income of $915.4 million in the fourth quarter of 2009, compared with a net loss of $3.63 billion. Lilly did equally well for the fiscal year, totaling 4.33 billion in net income for 2009, compared with a net loss of $2.07 billion in 2008.

In the fourth quarter of 2009, Lilly reported worldwide total revenue of $5.93 billion, an increase of 14 percent compared with the fourth quarter of 2008. The company attributed the growth to an increase of 7 percent due to higher volume, 3 percent due to higher prices, and 3 percent due to the impact of foreign exchange.

Total fourth-quarter revenue in the U.S. increased 11 percent to $3.26 billion due to higher prices and wholesaler buying patterns. Total revenue outside the U.S. increased 18 percent to $2.67 billion due to increased demand and the positive impact of foreign exchange rates, partially offset by lower prices.

For the full-year 2009, Lilly posted worldwide total revenue increased 7 percent to $21.83 billion compared with 2008. The company said it experienced a 7 percent increase due to higher volume and a 3 percent increase due to higher prices, partially offset by a 3 percent decrease due to the impact of foreign exchange rates.

Total full-year revenue in the U.S. increased 12 percent to $12.29 billion due to higher prices and higher demand. Total revenue outside the U.S. increased 1 percent to $9.542 billion due to increased demand, partially offset by the negative impact of foreign exchange rates and lower prices, Lilly said.

Lilly recognizes 50 percent of the revenue share of Byetta's gross margin in the U.S., 100 percent of Byetta (exenatide injection) sales outside the U.S., and its sales of Byetta pen delivery devices to its partner, Amylin Pharmaceuticals.

For the fourth quarter, Lilly recognized total revenue of $120.5 million for Byetta, an increase of 17 percent. Worldwide sales of Byetta were $203.6 million in the fourth quarter of 2009, a 9 percent increase compared with the fourth quarter of 2008, driven by growth in international markets.

U.S. fourth-quarter sales of Byetta increased 1 percent to $163.7 million compared with the fourth quarter of 2008, while sales of Byetta outside the U.S. were $39.9 million.

For the full-year 2009, worldwide Byetta sales increased 6 percent to $796.5 million. U.S. Byetta sales for 2009 decreased 2 percent to $667.6 million, while sales outside the U.S. increased 77 percent to $128.9 million. For the full-year 2009, Lilly recognized revenue totaling $448.5 million, representing a 13 percent increase compared with 2008.

Lilly did not report earnings associated with prasugrel (Effient).