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Eli Lilly profit misses estimates on weak demand, higher costs

Credit: REUTERS/MIKE BLAKE

Eli Lilly and Co missed analysts' expectations for third-quarter profit on Tuesday due to lower demand for some its medicines and increased costs to develop COVID-19 treatments.

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Oct 27 (Reuters) - Eli Lilly and Co LLY.N missed analysts' expectations for third-quarter profit on Tuesday due to lower demand for some its medicines and increased costs to develop COVID-19 treatments.

The drugmaker said it expects 2020 COVID-19 research and development expense to be roughly $400 million, sending its shares down 4% before the opening bell.

Lilly's results come a day after it said no additional hospitalized COVID-19 patients will receive its experimental antibody treatment based on data suggesting that the therapy was unlikely to help these patients recover.

The company has submitted requests for emergency use authorization to the U.S. regulator for both its antibody treatment bamlanivimab as well as its arthritis drug baricitinib.

Net income fell to $1.21 billion, or $1.33 per share, in the quarter ended Sept. 30, from $1.25 billion, or $1.37 per share, a year earlier.

Excluding items, the drugmaker earned $1.54 per share, below analysts' average estimate of $1.71 per share, according to IBES estimates from Refinitiv.

FACTBOX-Drugmakers rush to develop COVID-19 treatments

CORRECTED-EXCLUSIVE-FDA faults quality control at Lilly plant making Trump-touted COVID drug

UPDATE 3-Eli Lilly says other COVID-19 antibody drug trials ongoing after study halted for safety concern

(Reporting by Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty)

((ankur.banerjee@thomsonreuters.com;; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 6132; Twitter: @AnkurBanerjee17;))

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