Eli Lilly & Co. (LLY), Merck & Co., Inc. (MRK), Sanofi SA (ADR) (SNY): Positive News for This Troubled Pharma Player

Total return growth
How does Lilly compare to its competitors Merck & Co., Inc. (NYSE:MRK) and Sanofi SA (ADR) (NYSE:SNY)? All three companies are suffering from patent cliff losses. Merck & Co., Inc. (NYSE:MRK)’s $4 billion asthma and allergy drug, Singulair, fell off patent last year while Sanofi SA (ADR) (NYSE:SNY) lost best-selling blood thinner Plavix and high blood pressure drug Avapro.

Here’s a look at the total returns compared to the S&P 500:

LLY Total Return Price data by YCharts.

Lilly has not had a great run of staying above the S&P over the past five years. But Merck & Co., Inc. (NYSE:MRK) and Lilly are almost in a better position since the top drug’s cliff is either over or about to be over. Sanofi SA (ADR) (NYSE:SNY)’s still facing the 2015 expiration of its $6.5 billion insulin Lantus. Eli Lilly and Merck & Co., Inc. (NYSE:MRK) have to work at rebuilding. Sanofi SA (ADR) (NYSE:SNY)’s rebuilding from some patent expirations while bracing for a potential crash.

Foolish final thoughts
Eli Lilly & Co. (NYSE:LLY) will take a beating after Cymbalta goes off the cliff and its revenues evaporate. But the pipeline is at least getting some things right in decent-sized markets such as diabetes and lung cancer.

The article Positive News for This Troubled Pharma Player originally appeared on Fool.com and is written by Brandy Betz.

Brandy Betz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.