A trio of Big Pharma earnings to report, each with its own illustration of current industry trends. Roche's results benefited from cost cuts, while Eli Lilly posted a double-digit drop in profits on higher expenses. Abbott Laboratories saw revenues rise in part because of a big jump in emerging-markets sales, thanks to its acquisition of Piramal Healthcare's generics business.
- Roche's first-half results beat analyst estimates as Swiss media predicted earlier this week. The company also raised its outlook for the full year despite the drag on numbers from the strong Swiss franc, Dow Jones points out, and in spite of a decline in Avastin sales. Profits actually dropped--to $6.27 billion--but analysts had expected worse. CEO Severin Schwan (photo) credited Roche's restructuring, which included several thousand jobs cut; Jeffries analysts praised "good cost control." Roche release | News | Report
- Abbott Laboratories ($ABT) saw revenues in developing countries grow by 23% to $2.3 billion, in part because of the Piramal deal. That acquisition put Abbott in the catbird seat in India, one market that global drugmakers have been targeting aggressively. Pharma sales overall grew by 13%. The anti-inflammatory drug Humira was the star product, with a 25% increase in sales to $2 billion. Abbott release | Story | Article
- Eli Lilly ($LLY), whose second quarter net income dropped by 11% to $1.2 billion. Revenue rose by 9% to $6.25 billion, fueled by double-digit increases in sales of the antipsychotic Zyprexa and the antidepressant Cymbalta. Unfortunately, marketing and R&D expenses grew as the company launched new drugs, the Indianapolis Star reports. Lilly nonetheless raised its earnings outlook for the year. Lilly release | Report | Item