Eli Lilly & Co. says hefty costs related to its $6.5 billion acquisition of ImClone will force the drugmaker to post a loss for 2008 and significantly lower earnings for 2009.
The Indianapolis-based company warned of slower sales growth due
to the stronger dollar's dampening effect on overseas sales and
generic competition for its cancer drug Gemzar.
Lilly says it expects earnings of $4 to $4.25 per share in 2009,
below analysts' average estimate of $4.26 per share.
Lilly says 2009 revenue will grow in the low single digits, as
the stronger dollar's negative effect on overseas revenue will
cancel out some sales gains.
The company also says Gemzar will face generic competition in
some markets, though the U.S. patents on the drug aren't scheduled
to expire until 2013.
(Copyright 2008 by The Associated Press. All Rights Reserved.)