Mounting Costs Hurt Eli Lilly's Bottom Line

BMI View: While BMI anticipated that Eli Lilly & Co's marketing, selling and administrative costs would impact the quarter's profitability, higher than expected costs of sales helped trim the company's operating revenue by close to 35%. The increased sales and marketing expenditure falls in line with our view that mounting losses at the company's core franchises make a marketing push necessary before a wave of patent expirations. [Insert Revenue/Expense

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