2 Healthcare Stocks Trading in Different Directions Post Earnings

Eli Lilly and Company (NYSE:LLY) reported its results for the fourth quarter. Net income for the drug manufacturer fell to $858.2 million (77 cents per share) vs. $1.17 billion ($1.05 per share) a year earlier. This is a decline of 26.6% from the year earlier quarter. Revenue fell 2.3% to $6.05 billion from the year earlier quarter. LLY reported adjusted net income of 87 cents per share. By that measure, the company beat the mean estimate of 80 cents per share. It beat the average revenue estimate of $5.9 billion.

“Lilly’s fourth quarter results not only reflect the impact of recent patent expirations, but also highlight the growth opportunities that will enable us to remain a strong and successful company in the years ahead,” said John C. Lechleiter Ph.D., Lilly’s chairman, president and chief executive officer. “Although we anticipated the sales erosion in the fourth quarter resulting from the loss of U.S. patent exclusivity for Zyprexa in late October, I am encouraged by the strong performance of many other areas of our business. Products such as Cymbalta, Humalog, Humulin, Forteo, Alimta, Cialis and our animal health portfolio all demonstrated solid growth in the quarter, as did key regions including Japan and the emerging markets. With continued growth in these areas, along with a late-stage clinical pipeline that now features a dozen potential new medicines in Phase III, Lilly is well-positioned to deliver on our innovation-based strategy and create long-term value for all of our stakeholders.”

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Bristol Myers Squibb Co. (NYSE:BMY), Merck & Co., Inc. (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN), GlaxoSmithKline plc (NYSE:GSK), Alkermes, Inc. (NASDAQ:ALKS), Novartis AG (NYSE:NVS), and Abbott Laboratories (NYSE:ABT).

Biogen IDEC Inc (NASDAQ:BIIB) reported its results for the fourth quarter. Net income for Biogen IDEC Inc rose to $300.2 million ($1.22 per share) vs. $240.3 million (99 cents per share) in the same quarter a year earlier. This marks a rise of 25% from the year earlier quarter. Revenue rose 8.8% to $1.33 billion from the year earlier quarter. BIIB reported adjusted net income of $1.51 per share. By that measure, the company beat the mean estimate of $1.46 per share. It beat the average revenue estimate of $1.29 billion.

Competitors to Watch: Elan Corp., plc (NYSE:ELN), Amgen, Inc. (NASDAQ:AMGN), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Abbott Laboratories (NYSE:ABT), Merck & Co., Inc. (NYSE:MRK), Genzyme Corporation (NASDAQ:GENZ), Pfizer Inc. (NYSE:PFE), GlaxoSmithKline plc (NYSE:GSK), and Bristol Myers Squibb Co. (NYSE:BMY).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com