Eli Lilly & Co. (LLY): Will The Big Bets Pay Off?

To address those concerns, Lilly has turned to oncology and diabetes treatments, which make up the vast majority of its stable of clinical-stage drugs. Just last week, the company announced favorable results on phase 3 trials of its dulaglutide treatment for type 2 diabetes, including signs of superiority over Sanofi SA (ADR) (NYSE:SNY)‘s Lantus. In addition, Lilly is still seeking to address Alzheimer’s disease, having made a deal with Germany’s Siemens AG (ADR) (NYSE:SI) to obtain imaging tracers that could help it develop treatments for the disease.

Still, Lilly has had to take tough measures in light of its patent cliff. Earlier this month, the company said it would have to restructure its sales force, with job cuts expected by July 1. The restructuring could result in a net job loss of roughly 700 workers as the company strives to contain costs.

In Eli Lilly & Co. (NYSE:LLY)’s report, watch closely for signs of how well its cost-containment measures are doing at preserving profits. Eli Lilly & Co. (NYSE:LLY) needs to make the most of Cymbalta before it loses patent protection, and shoring up its finances to withstand the coming hit is essential.

The article Will Eli Lilly’s Big Bets Pay Off? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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