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Eli Lilly, Marion Merrell Report Higher Quarterly Income

January 31, 1991

Undated (AP) _ Eli Lilly & Co. said Thursday its fourth quarter income rose 13 percent over a year ago, while another large drug manufacturer, Marion Merrell Dow, reported a 53 percent jump in quarterly earnings.

Lilly netted $255.3 million, or 91 cents per share, during the final three months of 1990, compared with earnings of $225.3 million, or 77 cents per share, in 1989. Sales rose 26 percent to $1.44 billion from $1.14 billion.

For all of 1990, the Indianappolis-based company had a profit of $1.127 billion, or $3.90 per share, up 21 percent from the $939.5 billion, or $3.20 a share, earned the previous year. Sales rose 24 percent to $5.19 billion from $4.176 billion.

Marion Merrell, based in Kansas City, Mo., said fourth quarter net income totaled $112 million, or 39 cents a share, compared with $73 million, or 27 cents per share, in 1989. Sales were $630 million, up from $535 million.

The company’s 1990 income reached $487 million, or $1.72 per share, on sales of $2.5 billion, up from $397 million, or $1.43 a share, and $2.2 billion in sales.

Lilly said sales of the antibiotic Ceclor and the antidepressant Prozac were particularly strong during the fourth quarter. But those gains were partially offset by a loss from its stock buyback program and lower earnings from its DowElanco division.

DowElanco, a plant science unit, is Lilly’s joint venture with Dow Chemical Co. Lilly, which holds a 40 percent stake in the venture, did not provide a breakdown of DowElanco results.

Marion Merrell said sales of the Cardizem line of cardiovascular products and Seldane, a non-sedating antihistamine, helped its quarterly results.

Sales of Carafate, a drug used to treat ulcers, also rose, while Nicorette, a prescription drug to help people stop smoking, became the company’s fourth product to go over $100 million in sales, it said.

Marion Merrell was created in December 1989 by the merger of Marion Laboratories Inc. and Merrell Dow Pharmaceuticals Inc.

The 1989 financial results were based on the assumption the two companies had operated as one for the entire year.

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