PHARMACEUTICAL giant Eli Lilly says President Obama’s reforms of the US healthcare system will cost it hundreds of millions of dollars.
The company, which employs 475 people at its Speke plant, yesterday said first quarter revenues rose 9% on 2009, to $5.5bn (£3.6bn). But it said profits would be down 5% at $1.2bn (£788m) as a result of the “substantial costs” it expects to incur from President Obama’s hotly-debated healthcare reform bill.
Lilly said it expected 2010 revenues to fall by as much as $400m (£262m) as a result of “higher governmental rebates”. John Lechleiter, Lilly's chairman and chief executive, said: “We expect that the new US health care reform legislation, while not perfect, will help seniors in the Medicare system better afford their prescriptions and will provide greater access to our medicines for millions of Americans who are currently uninsured.
“However, as a result of the new legislation, Lilly will incur substantial costs to our business.”
Some 70% of the Speke plant’s work is for Lilly’s Elanco animal products division.
Lilly said worldwide sales of animal health products in the first quarter of 2010 stood at $289.6m (£190m), up 10% on the same period in 2009.
