October 20, 2011
Company news: Lilly and Amgen
Greater marketing and sales costs hurt Lilly's third-quarter profits, which slipped 6% to $1.2 billion. The company said sales rose 20% or more for several products during the quarter, including Cymbalta, Humalog, Strattera and Forteo, along with animal health products, but was hit by costs associated with healthcare reform, which reduced revenue by around $330 million and increased administrative expenses by around $135 million for the first nine months of the year.
Amgen is laying off 380 employees from its R&D division, Bloomberg reported, after slashing research spending 26% during the second quarter to accommodate the expense associated with moving three pipeline candidates into larger clinical trials.