WASHINGTON. Thursday, June 30, 2011 12: 00 am EDT
WASHINGTON (Reuters) - Eli Lilly and Co (LLY.)(N) is committed to spend what it takes to arrive at innovative drugs in the long term, said the Chief Executive, even if the income of the company are expected to tumble over the next three years.
"It would be a mistake for us to divest a significant R & d," CEO John Lechleiter says in an interview.
"As a company that focuses on innovation and research for new treatments and cures, it is important that we maintain a sustained approach and a consistent approach by investing in R & D and I am confident, it will be profitable," Lechleiter told Reuters on the sidelines of the International Convention Bio Washington.
In a discussion group earlier at the convention, the CEO is surprised that other large cash recently took axes to their research budget to increase profits in the short term for shareholders.
"I never thought that I would live to see this, but investors are really thinking about cutting R & D - which is the subject of the day," he said. "It's kind of nuts, but it is what is be talked about."
Lechleiter, which started as a chemist for the company 32 years ago, is
supposed to defend his research spending when the drugmaker meeting later today with hundreds of analysts and investors.
They will be eager to hear how profitability will be reduced on the runway as a few more great contest face of Lilly of cheaper generic drugs.
Pfizer Inc. (PFE).(N) in February, has announced that it slash up to 2 billion dollars of its R & D budget and eliminate thousands of research staff to make promises of gains to shareholders.
Lechleiter refused to comment on the rival specific, but great said focused on spending cuts earnings can throw compliance research organizations.
"It is crazy;" "first of all, by definition it is an industry focused on the research and development," he said.
"We spend as an industry more on R & D, as a percentage of sales, most likely in any other industry." It is long-term investments, and it is important to maintain a consistent to invest in research and thoughtful approach. It is very difficult when you go through many ups and downs.
"The result will make a difference for shareholders Lilly is our ability to launch new precious drugs that will allow us to replace and grow our revenue base as we have these patents expired," he said.
"NOT OUR DARKEST HOURS.
Lilly in April, said that worldwide sales of its first quarter increased by 6% 5,84 billion, fueled by sales of its prescription drugs.
But he predicted a decrease in revenue for the year from 9 to 12%, aware that 5 billion a year Zyprexa schizophrenia drug will be ravaged by the less expensive generic starting in October.
The cancer drug Gemzar lost half of its sales of generic drugs in the year past and best selling of the company Cymbalta antidepressant and Evista for osteoporosis treatment will face generic by 2014.
The drugs were considered as when they were introduced there is ten years, major advances or image longer Lilly and burnishing as an innovator long after it introduced the first modern antidepressant Prozac.
Although the company did not develop many large vendors in recent years, Lechleiter expressed confidence that many drugs 70 company now in human trials will be successful, restore earnings and prove continuous Lilly Research prowess.
"To compensate for some of the sadness which seems to hang on in this industry, it comes to our darkest hours, I think that has never been a time more likely."
(Editing by Muralikumar Anantharaman;) Reuters Messaging: ransdell.pierson.reuters.com@reuters.net; 646-223-6034; ((Ransdell.Pierson@Reuters.com))
No comments:
Post a Comment