Lilly Cuts Forecasts as Prozac Sales Fall

Eli Lilly & Co. cut profit forecasts after competition from cheaper, generic versions of its antidepressant Prozac pushed sales lower in the third quarter.

Full-year profit, excluding one-time items, probably will be $2.55 to $2.57 a share, Lilly said. The company has lowered 2002 forecasts three times in six months and is “cautious” about 2003 as regulators reassess plants that failed inspections, stalling drug approvals.

Net income jumped 20% to $683.9 million, or 63 cents a share, from $570.1 million, or 52 cents, a year earlier, when write downs and expenses hurt Lilly’s profit. Third-quarter sales declined 3% to $2.8 billion. Excluding Prozac, revenue would have climbed 7%, the company said.

Lilly shares fell $4.91 to $58.09 on the NYSE.