Updated on 7 October 2013
Eli Lilly said that it will generating $20 billion in revenue, $3 billion in net income and $4 billion in operating cash flow through 2014, despite impending losses due to patent cliff
Singapore: Eli Lilly and Company has outlined its strategies to face patent cliff expected in 2014. In a statement to investors, the company mentioned about the launch several new medicines to treat unmet patient needs beginning next year, and return the company to revenue growth and expanding margins after 2014.
Lilly also reaffirmed its near-term goals of generating at least $20 billion in revenue, $3 billion in net income and $4 billion in operating cash flow through 2014, despite the impending loss of revenue due to patent expirations for two major products in the US, beginning in December of this year. The company also announced a new share repurchase program that will return an additional $5 billion to shareholders over time.
Mr John C Lechleiter chairman, president and CEO, said, "We've undertaken extensive efforts to transform our company to address the challenge of patent expirations and the demands of patients and payers for greater value from medicine."
He also added, "Today, we're seeing our strategy bear fruit, backed by clinical data that strengthens our confidence in our innovation-based strategy and in our ability to return to growth. We're determined to seize the tremendous opportunities before us and drive a new era of growth for Lilly and its shareholders, while delivering on our mission of improving the lives of patients."
Eli Lilly has two medicines in its pipeline to treat type 2 diabetes, including empagliflozin (with partner Boehringer Ingelheim) and dulaglutide, a new insulin glargine product to treat type 1 and type 2 diabetes. It also has ramucirumab, which is a single-agent treatment for patients with advanced gastric cancer who have had disease progression after initial chemotherapy, and necitumumab for patients with metastatic squamous non-small cell lung cancer. The company believes that it would launch empagliflozin, dulaglutide, and ramucirumab, in 2014, subject to regulatory approval.