Profits Up at Drug Companies

Major drug companies on Tuesday reported generally stronger-than-expected earnings, led by Eli Lilly, which showed continued gains in sales of the antidepressant Prozac.

If last year’s profit from Indianapolis-based Lilly’s medical devices unit, which has been spun off, is excluded, the company’s net income would have improved 33%.

The company earned $415.6 million, or 76 cents per share, during the period ended Sept. 30, compared with $1.23 billion, or $2.14 share, during the 1995 quarter.

Of last year’s profit, $917.5 million came from the medical device unit.

Analysts had been estimating that the quarterly profits would amount to 64 cents per share, and the company’s stock rose as much as $2.25 before settling back to close up 50 cents at $69.25 on the New York Stock Exchange.

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SmithKline Beecham credited sales of new drugs for a 16% profit increase and said its Nicoderm patch and Nicorette gum helped its earnings increase to $386 million, or 71 cents for each American depositary receipt, on sales of $3.1 billion. A year ago, the company, with headquarters in London and Philadelphia, earned $334 million, or 61 cents.

This year’s earnings were expected to be about 70 cents per ADR, according to a survey of analysts.

The New York Stock Exchange-traded ADRs closed 62.5 cents higher to $64.125.

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Bristol-Myers Squibb’s profit rose 9%, led by sales of cholesterol-fighter Pravachol.

The New York-based company’s earnings rose to $753 million, or $1.50 per share, compared with $689 million, or $1.36 a share, in the year-ago quarter.

The earnings per share beat expectations of $1.48. The company’s stock closed up $2.875 to $106.875 on the NYSE.

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Morris Plains, N.J.-based Warner-Lambert said earnings rose 16% to $153 million, or 56 cents per share, in the quarter, compared with $132 million, or 48 cents a share, a year earlier. Sales of $1.8 billion remained virtually unchanged from the third quarter of 1995.

The company’s results slightly beat analysts’ estimate of 54 cents per share, but the company’s stock closed down 87.5 cents at $65.25 on the NYSE.

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Madison, N.J.-based American Home Products earned $491.1 million, or 77 cents per share, compared with $276.5 million, or 45 cents, for the same period a year ago.

Excluding a restructuring charge recorded a year ago, net income was up 25%, the company said.

The results matched analysts’ estimates. Its stock closed down 37.5 cents per share at $66 on the NYSE.

Sales increased 7% to $3.5 billion from $3.3 billion for the same period last year.