There don't seem to be very many pharmaceutical companies less-liked than Eli Lilly (LLY). There's a long tradition here of blaming others for their problems (the government and prior management teams, especially), designing trials poorly, and generally mismanaging the pipeline to say nothing of the expense structure. Said differently, Lilly doesn't have one of the highest dividend yields in Big Pharma because its payout ratio is high.
A Little Good News In Q4
Against that dour intro, Lilly had a pretty respectable fourth quarter with a few catches. Revenue declined 2% overall as strong volume growth (8%) was buried by price erosion (11%). Pharmaceutical sales fell 4%, with sales in the U.S. down 6% (despite a 11% volume increase). Lilly's good quarter largely came down to strength in the diabetes franchise (which is definitely a positive) and less-than-expected erosion of the now off-patent Zyprexa.
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Lilly Has Earned Its Lousy Rep
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