Eli Lilly Cuts Earnings Forecast on Pending Loxo Acquisition
February 06 2019 - 7:48AM
Dow Jones News
By Kimberly Chin
Eli Lilly and Co. (LLY) said it has slashed its earnings
forecast to reflect the pending acquisition of Loxo Oncology Inc.
(LOXO), as well as the costs of the ineffective clinical trial of
Lartruvo.
The Indianapolis-based company projects 2019 earnings to be in
the range of $4.57 to $4.67 a share and adjusted earnings to be in
the range of $5.55 to $5.65 a share.
It expects a 41-cent drag on earnings from the integration of
its Loxo Oncology acquisition and a 13-cent drag from Lartruvo.
Last month, Lilly said Friday it would stop promoting the
relatively new cancer drug Lartruvo after a study found it failed
to significantly prolong the lives of patients. The company said
that it would continue selling the drug but would stop promoting
it. However, in another setback, U.S. and European health
authorities recommended that no new patients start treatment with
the drug.
In 2018, Lartruvo, which treats a rare kind of cancer, generated
global sales of $304.7 million, or about 1% of total company
revenue.
The company anticipates 2019 revenue to be between $25.1 billion
and $25.6 billion, spurred in part by strong demand for its newer
medicines.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
February 06, 2019 07:33 ET (12:33 GMT)
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