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Shares are down about 7% this -- concerns about patent expirations for some of its Blockbuster drugs but.
Could hotly anticipated drugs in the pipeline be just what the doctor ordered to turn the stock around.
With pharmaceuticals is always in the pipeline right -- Eli Lilly CEO chairman president John let Leiter joins us now fox.
You know this patent expirations to -- not it's always the Bane of pharmaceutical CEOs existence but he did -- the expiration of -- Texas patent which was a big deal get.
-- at that point was filled by some of your other drugs let's talk about looking forward your current quarter and what you expect will be the big sellers.
Well last year of course -- we lost stars like pretzel -- in the US in Europe late in the year.
For the year 2011.
The grew sales 5% but in the fourth quarter sales declined 2%.
Because we saw the beginnings of the impact of that -- -- this is the nature of our business so we enjoy intellectual property protection for a period of time.
Then these medicines general would become available -- lower cost generic -- a pretty good deal for the American consumer obviously our job is to go back.
And find new medicines that can replace the ones that we're losing the patent on that offer -- additional benefits for patients and for consumers sold this year.
We forecast sales of 21 point eight to 22 point eight billion dollars but that includes the loss of about three billion dollars in -- practices sales.
Over the course of 2012.
That will be offset by some of our other products like some fault C Alice are -- -- are cancer drug.
A -- and others in addition we're growing very rapidly in China in Japan are animal health business.
Last you're grew 21%.
We do have some offsets but the key is bringing that pipeline forward.
We've got twelve molecules in phase three right now so we're looking forward to a period of time up ahead you Begin to launch those.
Let's talk about something that is near and dear to most Americans hearts which is a new alzheimer's drug that's in the pipeline.
Still has a lot of hurdles it's it's gotta jump over and of course we've been disappointed by some house members drugs in the -- it didn't.
Do what they what we'd hoped they would be able to do can you give us the latest on that drug.
This a very difficult area every search as we -- were were all working hard to try to find new approaches to help treat.
Alzheimer's disease slowly has medicine called -- -- a -- which is presently in the latest stage of clinical development in phase three trials.
We reported at our earnings call in January 31 that the data safety monitoring board.
Have met this is a pre determined the meeting.
To make sure that as the trials proceed.
That the safety important safety criteria are being met.
We were told to continue those trials.
We expect they will complete in the second and third quarter of this year -- that sometime in the second half of the year.
A -- have a disclosure depending on the outcome of those studies we won't know until their complete at a major medical meeting.
John you've got a lot on your plate as you try and create drugs plus deal with the global business dealing with currencies structures that are different all over the world all kinds of currency pairings.
Looking at what is announced today by the president he says that he wants to cut the corporate tax rate to 28% from 35%.
-- but close the loopholes.
For your business of the kind of tax breaks that you get.
Is this -- hike for your corporate tax rate or will it be -- cut on -- corporate tax rate.
Liz this is a proposal we're gonna have to study very carefully.
A lowly and many other companies have been pretty outspoken in saying we need corporate tax reform.
There -- two principles we talked about consistently.
One is we need -- territorial system.
Or put stated simply.
We want to pay tax in the countries or jurisdictions where we earn the money.
This is what most other countries have already and secondly we've got to take this rate right now the US has one of the highest statutory.
Corporate tax rates in the world.
And -- it so that we can be competitive with overseas competitors and enable American companies be more success John on the first principles are the ones that -- look at as we study the president's proposal but on your first principle the president is dead set against it what what they envision is something brand new where they would be able to tax.
On profits that you make overseas.
To -- what you said based on what you said that sounds like a non starter.
Well -- they say we're gonna have to study the proposal more carefully I think it's a positive vote note.
That -- White House has put forward a proposal for reform because we know something's gotta be done.
Jon -- lighter chairman and CEO of Eli -- we thank you for joining us exclusively here on fox -- -- Thank you good luck on the alzheimer's had a good.
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