Eli Lilly has posted a net income of $1.25bn, or $1.13 per diluted share, a decrease of 5%, compared to $1.31bn, or $1.20 per diluted share, for the prior year period. Operating income was $1.63bn, compared to $1.75bn for the year ago period.
In total, first quarter 2010 earnings were reduced by $.12 per share due to the impact of US health care reform, comprised of both the approximate $60m in higher rebates ($.04 per share) and the one-time tax charge of $85.1m ($.08 per share).
Eli Lilly estimates that US health care reform will lower earnings by approximately $0.35 per share in 2010. It expects volume-driven revenue growth in the mid-single digits, driven primarily by Alimta, Cymbalta, Humalog, Cialis, Effient and the exenatide franchise.
John Lechleiter, chairman and CEO of Eli Lilly, said: “Lilly delivered strong operational performance in the first quarter, even as we experienced continued weakness in the US dollar versus prior periods and began to account for the impact from recently-enacted US health care reform.
“We expect that the new US health care reform legislation, while not perfect, will help seniors in the Medicare system better afford their prescriptions and will provide greater access to our medicines for millions of Americans who are currently uninsured.”