Eli Lilly shows “strong fundamentals”

Eli Lilly retained its “strong fundamentals” during the third quarter of this year, according to its president and chief executive officer.

John Lechleiter made his comments as the company announced its third quarter results for 2008, which saw the company experience a sales increase by 14 per cent to $5.21 billion (3.33 billion pounds).

Continuing, Mr Lechleiter states Lilly has taken “significant actions” to advance its pipeline, transform its business model and increase productivity.

He explains these included the purchase of companies, in-licensing of “promising molecules”, restructuring and impairment of assets from continued productivity initiatives and the move toward resolution of a “significant” aspect of pending Zyprexa investigations and litigation.

“In the third quarter, the underlying fundamentals of our business remained strong, highlighted by volume-driven sales growth and an expansion in gross margin. Our revised full-year EPS guidance reflects these strong fundamentals,” Mr Lechleiter continues.

In conclusion, he states the proposed acquisition of ImClone would create a “leading” oncology franchise and strengthen Lilly’s capabilities with regard to biotechnology.

The company announced it had begun its tender offer for all outstanding shares of ImClone Systems at a price of $70 per share in cash on October 14th.