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Lilly Sees Slower 2009 Sales Growth, Big 4Q Charge

admin — Fri, 28 Nov 2008 22:21:16 +0000

(Adds analyst reaction beginning in seventh paragraph and updated stock
price.)
Eli Lilly & Co.
(LLY) expects to swing to a profit in
2009 from an anticipated loss in 2008 but sees sales growth slowing due to less
favorable currency exchange rates as well as generic competition for one of its
cancer drugs.
$6.5 billion
acquisition of ImClone Systems would result in a large charge for the fourth
quarter, causing the full-year net loss. The company also expects costs from the
deal to reduce 2009 earnings.
But excluding these financial impacts of ImClone in both years, and other
items, Lilly sees 2009 earnings growth of 8% to 15% from 2008.
. In addition, Lilly
highlighted what it considers to be a stronger pipeline of experimental drugs
partly as a result of the ImClone acquisition, which expanded Lilly’s presence
in cancer drugs.
Bristol-Myers Squibb Co.
(BMY) to win ImClone, which developed
the cancer drug Erbitux, and Lilly sees the deal as crucial to getting through a
challenging period of new generic competition for top drugs including
antipsychotic Zyprexa beginning around 2011.
, or 2.7%, to
$35.95
.
Some analysts said Lilly appeared to taking the right steps to get ready for
the wave of patent expirations it will hit in the next few years. But Lilly’s
ability to perform well in that period will depend upon whether drugs currently
in development will be approved and be successful – a somewhat risky proposition
given the cautious stance over drug safety taken by the U.S. Food and Drug
Administration.
“They have a good foundation right now for decent adjusted earnings growth in
2009,” said
, analyst with BMO Capital Markets, who rates Lilly
shares “outperform.” “The message here is let’s prepare for the next decade.”
Lilly’s leaders also indicated Thursday that they would consider entering the
so-called “follow-on biologics” market, in the wake of
Merck & Co.’s
(MRK)
disclosure this week that it was jumping into that field. Follow-on biologics
are loosely equivalent to generic versions of biotechnology-style drugs and are
seen as a future growth area for the drug industry. Lilly said it hadn’t firmed
its plans, but the recent ImClone buy has beefed up Lilly’s biotech
capabilities, and executives say it’s a possible strategic move.
“We’re very much considering that,” Chief Executive
told
analysts during a conference call. “We’ve not explicitly stated that as part of
our overall strategy in biotech.”
For 2008, Lilly expects to post a net loss of
$1.56 to $2.06
a share, revising
its earlier forecast of earnings of
$2.44 to $2.49
a share. The main factor is
an anticipated charge of
$4.05 to $4.50
a share related to the ImClone deal,
which closed in November. Excluding the charge and other items, Lilly sees 2008
earnings of
$3.97 to $4.02
a share, in line with its previous forecast excluding
items and up 12% to 14% from 2007.
The 2008 results are expected to reflect sales growth in the high single-
digits to low-double-digits on a percentage basis. But 2009 sales growth is seen
slowing to the low single digits because the U.S. dollar has strengthened
against foreign currencies. Also, cancer drug Gemzar is expected to face generic
competition outside the U.S. Gemzar had sales of
$1.6 billion
in 2007. (The
stronger dollar, however, also is expected to improve gross profit margins,
particularly in the first half of 2009).
On average, analysts surveyed by Thomson Reuters were anticipating 2009 sales
growth of 7% to
. CEO Lechleiter said an added uncertainty for 2009
is the possibility of health-care reform by the incoming Obama administration.
He expressed hope that reform measures wouldn’t be “carried out on the back of
the biopharma industry.”
Another challenge to sales growth may come from people trimming health-care
expenses due to the economic downturn. But Chief Financial Officer Derica Rice
told Dow Jones Newswires several drugs were continuing to post sales growth
because they treat diseases or conditions where symptoms would worsen
immediately if treatment stopped, such as insulin for diabetics. Even sales of
impotence drug Cialis were still growing, he noted.
$4 to $4.25
a share. This
reflects costs from the ImClone Systems purchase, which are seen reducing
earnings by
a share. Excluding these, earnings would be
$4.35 to
$4.55
a share, up 8% to 15% from expected 2008 results.
Although some analysts were expecting the earnings dilution from the ImClone
purchase to be lower, Rice said the impact was actually better than Lilly had
expected going into the acquisition. He said the dilution reflects the
amortization of intangible assets, cost of financing and ongoing support of
ImClone’s drug research. Rice added that some analysts didn’t include ongoing
research costs in their models.
Lilly’s 2009 forecast assumes the launch of prasugrel, the anti-clotting drug
codeveloped with
(4568.TO) that analysts think could be a big
seller. Lilly had hoped for regulatory approval by the end of this year, but the
Food and Drug Administration has missed its targeted decision date, and Lilly is
still in talks with the FDA on the application. A large study showed prasugrel
was more effective than market leader Plavix – co-marketed by
Bristol-Myers
Squibb Co.
(SNY) – at reducing risk of heart attacks
and related disease, but it increased the risk of major bleeding.
Lilly is studying several other experimental drugs in late-stage trials that
the company hopes will come to market in coming years, including treatments for
Alzheimer’s disease, diabetes and osteoporosis. Lilly said it planned to reduce
the cost of bringing a new drug to market to an average of
$1.2 billion
now.
Lilly’s forecast for both years assumes continued strong growth in sales of
the antidepressant Cymbalta, which has been approved for additional uses such as
the pain condition fibromyalgia. Sales could get a further boost because the
giant health insurer
WellPoint Inc.
(WLP) has moved the drug up on its
formulary, or list of preferred drugs, so that its members have better coverage
for the drug, Rice disclosed.
Lilly also expects continued sales growth for the impotence drug Cialis,
cancer drug Alimta and diabetes drug Humalog.
Separately, asked to address the prospect of industry consolidation,
Lechleiter said Lilly planned to remain independent and he said mega-mergers in
the drug industry haven’t been very successful.
, Dow Jones Newswires; 215-656-8289;
Kerry E. Grace
contributed to this report.)
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(END) Dow Jones Newswires
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Copyright (c) 2008 Dow Jones & Company, Inc.

Drugs charge teacher is suspended

admin — Wed, 22 Oct 2008 07:11:25 +0000

An Aberdeen primary school teacher has been suspended after facing a drugs charge in court.
Malcolm Stopani, 57, who works at Scotstown School in the Bridge of Don area, has been charged with being concerned in the supply of drugs.
He earlier denied the charge when he appeared at Aberdeen Sheriff Court, and is due back to face trial in January.
An Aberdeen City Council spokesman confirmed a teacher had been suspended from a local primary school.

Court ruling should put FDA in charge of tobacco products

admin — Mon, 06 Oct 2008 19:07:57 +0000

POSTED: 01:30 a.m. HST, Dec 18, 2008
EFFORTS to combat smoking in Hawaii have been directed at creating smoke-free zones, raising tobacco taxes and keeping cigarettes away from children, but the U.S. Supreme Court has opened another avenue. By a 5-4 vote, the high court ruled this week that smoking addicts may sue tobacco companies for violating state consumer protection laws.
The ruling in a case brought by three Maine smokers departed from leaving such issues to the Federal Trade Commission, which oversees trade practices. The court ruled that the case can go to trial, but future regulation of tobacco should be assigned to the federal Food and Drug Administration.
The smokers maintain that Philip Morris advertisements for “light” cigarettes are deceptive in suggesting that they are less harmful than ordinary cigarettes. In the 1960s, the FTC endorsed machine testing of cigarette tar and nicotine levels, relieving tobacco companies of liability, but it finally dropped its endorsement of the test last month. In fact, many smokers puff “light” cigarettes harder and inhale deeper.
The federal Cigarette Labeling and Advertising Act says that “no requirement or prohibition based on smoking and health shall be imposed under state law with respect to the advertising and promotion” of cigarettes as long as federal labeling requirements are followed. However, the Supreme Court ruled in 1992 that the law does not apply to lawsuits based on the “general duty not to make fraudulent statements.”
This week’s ruling opens the door to numerous lawsuits across the country maintaining that cigarette ads violate state laws by misleading consumers. It doesn’t prohibit tobacco companies from selling and promoting flavored cigarettes or newly marketed smokeless tobacco, which delivers nicotine in a pouch to be held in the consumer’s cheek.
R.J. Reynolds came under Gov. Linda Lingle’s wrath several years ago for peddling cigarettes such as Kauai Kolada, with “Hawaiian Hints of Pineapple and Coconut.” Although denying that the cigarettes were aimed at young people, the company agreed to stop giving its cigarettes names alluding to candy, fruit, desserts or alcoholic beverages.
Regulation of the tobacco industry belongs in neither the FTC nor state consumer-protection agencies but in the Food and Drug Administration. The Supreme Court ruled nearly a decade ago that the FDA lacks such authority, despite the call for such authority by the Institute of Medicine, an arm of the National Academy of Sciences.
Congress neglected this year to assign to the FDA the responsibility to regulate the content of cigarettes after disagreement about whether it should be allowed to regulate menthol. Minority health groups supporting inclusion of menthol cigarettes pointed out that three-fourths of African-American smokers prefer them.
The Bush administration joined Big Tobacco in opposition to the measure, but it deserves enactment soon with support by the Obama administration.

Women need to take charge of their own heart health

admin — Sat, 19 Jul 2008 05:01:26 +0000

I especially love February for several reasons: the box of chocolates, Heart Health Awareness Month and my personal favorite, the American Heart Association’s Go Red for Women campaign.
I have a personal interest in heart health for women based on an encounter I had last year. I met a woman at a local community center where I was volunteering to check blood pressures. She looked healthy to me, but she was 58 years old, had no primary care physician, no health insurance and cared for her two small grandchildren. She was unemployed the card she was dealt. She said she could not stay long because she needed to catch the bus home.
I checked her blood pressure, and it was through the roof. I rechecked it to be sure I was correct in my reading. It was still severely elevated at 220/118. The recommended blood pressure is 120/80.
Oh, that’s good for me, but I know it needs to be less, she told me.
I noticed a tear roll down her cheek. She said she didn’t know what to do since she had lost her job and her health insurance and could no longer afford her blood pressure medicine. I shared with her information about several local resources, including Project Access, the Buncombe County Health Center and Asheville-Buncombe Community Christian Ministry.
I also shared with her the risks of uncontrolled blood pressure, which include heart attack and stroke, and the importance of food choices and exercise.
I soon realized she did not feel she knew how to access help. She was not empowered, and it was important that she not leave without step-by-step instructions with a promise of a follow-up call from me.
There are so many women identical to this one lady. There are women who are fully employed, insured and feel they have no time to consider their own personal heart health.
According to the American Heart Association, heart disease is the No. 1 killer of women in America. No. 1. Women are more likely to die within one year of a heart attack than men.
Death from heart disease is even worse for African-American women. African-American women’s deaths from heart disease are 35 percent higher than for white women. Why is this? Obesity, high blood pressure and diabetes.
What can we do for ourselves?
Exercise at least 30 minutes three-five days per week (walking is great).
Make better food choices low-fat, no fried foods.
Get tested. Mission Hospital offers Know Your Numbers (blood pressure checks, cholesterol checks, blood sugar and body mass index). Visit www.mission
hospitals.org or call 213-7000.
Call the Asheville-Buncombe Institute of Parity Achievement at 251-8364.
Ask the women in your life if they have been tested. Feb. 6 was national Go Red Day in honor of Heart Health Awareness, but we should be sensitive to this every day. I love the color red, and I cannot think of a better reason to wear it proudly in support of healthy hearts. I will also eat a Dove Dark Chocolate Promise to soothe my sweet tooth.
From my heart to yours don’t take care, take charge.
This is the opinion of Sharon West, practice and standards administrator for the Buncombe County Health Center who is also a registered nurse, author, columnist and historian. E-mail her at
.

Ala. charge dropped against civil rights activist

admin — Fri, 04 Jul 2008 10:22:18 +0000

Ala. charge dropped against civil rights activist
MONTGOMERY, Ala. (AP) — A trespassing charge against civil rights activist Dorothy Tillman was dropped as part of a settlement with an Alabama hospital, her lawyer said Tuesday.
Municipal Judge Les Hayes had found the former Chicago alderman guilty last October of trespassing at the Jackson Hospital in Montgomery during a dispute over medical records.
She appealed that conviction, and a jury trial in Montgomery County Circuit Court was set to begin Tuesday.
Mississippi-based attorney Dennis Sweet, who is representing Tillman, said he was on the phone with the city’s prosecutor and counsel for the hospital right before the trial was to begin.
Sweet said Tillman, who accused police of using excessive force, would not pursue a civil case and “everything would be taken care of” by the settlement.
Jackson Hospital released a statement Tuesday saying it “regrets that this unfortunate incident occurred and it wishes Ms. Tillman the best in her future endeavors.”
Tillman, 61, was arrested March 2 after a confrontation over medical records for her 89-year-old aunt, who had been admitted after getting sick the day before. Tillman was in town for the funeral of civil rights icon Johnnie Carr.
Evidence during her October hearing included video from a surveillance camera that captured part of the March 2 confrontation. It shows Tillman, in the waiting area of the emergency room, being approached by police, placed on the floor and handcuffed before being led out.
A Montgomery native, Tillman worked as a teenage civil rights activist for the Rev. Martin Luther King Jr. and was appointed to the Chicago City Council in 1984. She is known for having fought to make companies doing business with Chicago disclose past ties to slavery.

RNs Charge Jackson Health System, Service Union Broke State Law in …

admin — Thu, 12 Jun 2008 06:18:37 +0000

– Links to the corruption scandal involving Illinois Gov. Rod Blagojevich.
SEIU is Blagojevich’s top campaign contributor, with donations
totaling over $1.8 million. Blagojevich helped SEIU by ordering the
state to negotiate with SEIU to represent 49,000 in-home child care
workers.
— Corruption charges involving leaders of major SEIU locals in Los Angeles
and Michigan. The president of SEIU’s largest local was forced to
resign after an expose by the Los Angeles Times found the local paid
hundreds of thousands of dollars to firms owned by his wife and
mother-in-law. Much of the money went to businesses suspended by the
state tax board for failing to file tax returns and other public
documents.
— That scandal has also led to the resignation of the head of SEIU’s
California State Council over alleged financial improprieties involving
her and a former boyfriend, and the head of SEIU’s largest Michigan
local after reports that a nonprofit housing corporation he filed had
been suspended for doing business for failing to file tax reports.
— Federal investigations of election rigging at SEIU locals in Las Vegas
and Los Angeles. The Las Vegas investigation resulted in preliminary
findings by the Department of Labor that included illegal use of SEIU
funds to help elect a slate favorable to SEIU International at the
expense of local activists promoting greater union democracy.
— Deals with large corporate chains that undermine worker and public
protections in exchange for sweetheart agreements to signup more
dues-paying members. Under a pact with California nursing homes, for
example, SEIU agreed to lobby against reforms to require better patient
care conditions in nursing homes, and to give management the
“exclusive right” to set pay, discipline employees, reassign
or eliminate jobs, and outsource work.
— Alliances with controversial large corporate employers such as Wal-Mart
which subvert genuine healthcare reform.
— Silencing dissent of its own members through lawsuits, sham elections,
and physical intimidation.
Copyright (C) 2008 PR Newswire. All rights reserved

Conn. doctor facing sex charge in White Plains loses NY medical …

admin — Sat, 22 Mar 2008 03:13:02 +0000

WHITE PLAINS – A Connecticut doctor accused of having sexually explicit online conversations with an undercover investigator posing as an underage boy has agreed not to practice medicine in New York state.
According to the state Health Department, Dr. Clifford Berken agreed yesterday not to practice in New York “or any other jurisdiction where the practice of medicine is predicated on his New York State medical license.” The agreement goes into effect on Thursday.
Berken, 55, of Stamford, Conn., appeared today in White Plains City Court on a felony charge of attempting to disseminate indecent material to minors. His criminal case was continued to March 6.
He is accused of having online “chats” with an undercover investigator with the Westchester County District Attorney’s Office posing as a 15-year-old boy.
They discussed various sex acts over two days, prosecutors said. Berken then offered to meet the “boy” in downtown White Plains, and was arrested at the rendezvous point.
He faces up to four years in state prison if convicted.
Berken is also under investigation by the New York state Health Department’s office of professional medical conduct.
Berken, a gastroenterologist with a practice in Greenwich, Conn., has had a New York medical license since 1982. His Connecticut license remains active, according to the Connecticut Department of Health’s Web site.
He is a physician at the Center for Gastrointestinal Medicine of Fairfield and Westchester in Greenwich. His hospital privileges at Greenwich Hospital are inactive, according to the New York State Health Department.

Michael Phelps marijuana drugs scandal County Sheriff to charge …

admin — Fri, 14 Mar 2008 18:31:54 +0000

Michael Phelps has gone from hero to zero in the last 48 hours after his drugs scandal went public – and now the star may even face charges.
Phelps, who issued an apology after a photo of the
was published, could even go to jail if the Richland County Sheriff Leon Lott has his way.
Lott said that he will charge Michael Phelps with a crime if he can prove that the Olympics hero smoked marijuana in Richland County, reports
.
“This case is no different than any other case,” Lott said. “This one might be a lot easier since we have photographs of someone using drugs and a partial confession. It’s a relatively easy case once we can determine where the crime occurred.”
In Richmond County possession of marijuana is an offence punishable by up to 30 days in jail or a $570 fine.
However, Sheriff Lott appears to be alone in his attempts to charge Michael Phelps. The University of South Carolina and Columbia Police Departments both said they would not pursue the case further.
yesterday saying: “I engaged in behaviour which was regrettable and demonstrated bad judgement.”
“I’m 23 years old and despite the successes I’ve had in the pool, I acted in a youthful and inappropriate way, not in a manner people have come to expect from me. For this, I am sorry. I promise my fans and the public it will not happen again” said Michael Phelps.
However, while Phelps’ image and reputation has been dented, he will not face any action by the United States Olympic Committee, as consuming marijuana outside of competition times is not a punishable offence.
The USOC did however release a statement saying it was “disappointed in the behavior exhibited by Michael Phelps,” and that he “regrettably…failed to fulfill those responsibilities” that a role model has.
The man who won an amazing eight medals for the United States at the Beijing Olympics, was
‘ printed the shot yesterday.
It wasn’t the first scandal to hit Michael Phelps (23), who has won
in his career. Phelps was arrested in 2004 for drink driving and was on parole for 18 months.
he grabbed headlines for his outrageous lifestyle: Gambling in Las Vegas and flirting with a stripper.

Cardinal Health 2Q Net Down 2.5% on Charge, Weaker Spending

admin — Thu, 06 Mar 2008 10:39:17 +0000

Cardinal Health Inc.’s
(CAH) fiscal second-quarter net income dropped 2.5%,
amid a charge related to plans to spin off its clinical and medical products
business and as hospitals delayed purchases amid the recession and tight credit.
Spending delays by its hospital customers prompted Cardinal early last month
to lower its fiscal-year earnings outlook. Nevertheless, the company is sticking
with its plan to spin off its clinical and medical-products business, which has
been growing faster and generating higher margins than Cardinal’s much larger,
core drug-distribution business.
Shares were up 4.8% at
$39.42
in recent premarket trading.
R. Kerry Clark
has said signs of a credit-market
thaw keep him optimistic that Cardinal will be able to carry out the spinoff by
summer, as expected. He reaffirmed the spinoff remains on track, Thursday.
“Despite a very challenging economic climate, we had solid growth from both of
our primary operating segments,” the CEO said.
Dec. 31
, the medical supply and pharmaceutical company
reported net income of
$316.5 million
, or
a share, down from
$324.7
million
, or
a share, a year earlier, below its January estimate of
a share. Excluding
in costs associated with the proposed spinoff,
earnings rose to
.
Revenue rose 7.8% to
$25.1 billion
. Analysts polled by Thomson Reuters were
expecting revenue of
$24.54 billion
.
Gross margin fell to 5.6% from 5.8%.
Pharmaceuticals-supply earnings rose 5.7% as revenue rose 7.8%, helped by
higher sales to existing customers. Medical-segment profit rose 16% on a 7.2%
revenue rise, damped by 3 percentage points by the stronger dollar.
Late last year, Robert W. Baird & Co. analyst
noted that roughly
a third of 15 companies selling medical and surgical instruments and clinical
technologies had lowered fourth-quarter revenue growth targets over a three-week
period. Coldwell also cited an American Hospital Association report that said
more than half of hospitals surveyed were considering or postponing renovations
or expansions, and many were delaying purchases of clinical technology or
equipment and information technology.
Looking ahead, Cardinal reaffirmed its full-year estimates, reduced in early
January, for earnings of
$3.50 to $3.60
a share, excluding items, and left
untouched its August forecast for revenue growth of 6% to 7%.
, Dow Jones Newswires; 201-938-5658;
(END) Dow Jones Newswires
02-05-09 0751ET
Copyright (c) 2009 Dow Jones & Company, Inc.

Actor And Son On Drugs Charge

admin — Thu, 28 Feb 2008 02:47:51 +0000

9:00am UK, Thursday September 18, 2008
Actor Ryan O’Neal and his son have been arrested on suspicion of possessing the drug crystal meth.
Malibu home during a routine check associated with his 23-year-old son Redmond.
Redmond is on probation for three years after pleading guilty in June to possessing drugs.
He admitted driving under the influence and possession of heroin and methamphetamine, known as crystal meth.
He avoided prison in exchange for starting a drug treatment programme and was put on probation.
Investigators suspect both men had methamphetamine although the substances still need to be tested,
County Sheriff’s spokesman Steve Whitmore said.
Police said they also found narcotics in Ryan O’Neal’s living area.
Both men were released after posting $10,000 (£5,519) bail.
The actor’s daughter,
, 44, a former child star, pleaded guilty in July to disorderly conduct stemming from a drug arrest in June.