Investors often overlook SEC filings, and it is the job of the 10Q Detective to dig through businesses’ 8-K and 10-Q SEC filings, looking for financial statement ‘soft spots,'(depreciation policies, warranty reserves, and restructuring charges, etc.)that may materially impact Quality of Earnings.
Wednesday, December 30, 2009
Eli Lilly's Wrong Road With Livalo
Eli Lilly (LLY-$35.01) chairman and chief executive office John Lechleiter stated that the drug maker’s deal to co-promote Japan-based Kowa Pharmaceuticals’ new lipid-modifying med Livalo would permit Lilly to expand its “product offerings in the cardiovascular therapeutic area and more efficiently utilize [its] existing cardiovascular sales force.” Corporate-speak, no doubt, to signal that its representatives need something to do. Although still in the early phases of launch in the U.S., worldwide sales for Effient (prasugrel), used to prevent clots in patients undergoing artery-opening stent procedures, were just $22.6 million in the third quarter of 2009.