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Lilly profit hit by COVID-19 drug costs

Published 10/27/2020, 11:45 AM
Updated 10/27/2020, 12:00 PM

Eli Lilly (NYSE:LLY) -- one of a handful of companies racing to develop a treatment for COVID-19 -- posted weaker-than-expected earnings for the third quarter on Monday -- as increased costs to develop COVID-19 treatments chipped away at profits and sales of its blockbuster diabetes treatment, Trulicity, slowed.

The disappointing results come a day after the company said no additional hospitalized COVID-19 patients would receive its antibody treatment as data from a government-run trial suggested it wasn't helping the patients recover.

The trial for its antibody treatment was paused earlier this month due to safety concerns... though the drugmaker said on Tuesday other trials of the coronavirus antibody therapy, bamlanivimab, remain on track.

Eli Lilly said costs associated with COVID-19 research and development are likely to rise to $400 million for the full year.

As for guidance, the company says it still anticipates 2020 revenue to be between $23.7 billion and $24.2 billion.

Though it cautioned that achieving the higher end of the range would likely require the inclusion of some revenue from potential COVID-19 treatments, which is possible but not certain at this point.

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