Eli Lilly Revenue Boosted By New Drug Sales
April 26 2016 - 8:10AM
Dow Jones News
Eli Lilly Co. said revenue rose in its latest quarter as sales
of new drugs helped offset declines in some established
products.
Lilly also cut its profit forecast for the year, citing the
Venezuelan financial crisis and a resulting $203.9 million
accounting charge. Lilly now expects annual earnings per share of
$2.68 to $2.78, down from the $2.83 to $2.93 it previously
expected. Still, the company increased its revenue guidance, saying
it now expects annual revenue of between $20.6 billion and $21.1
billion, up from the $20.2 billion and $20.7 billion it reported
previously.
Sales of Humalog, Lilly's biggest product by revenue, fell 11%
to $606.3 million as the company had lower realized prices which
was partially offset by increased demand of the diabetes drug. The
price decrease was related to changes in rebates and discount
estimates and the company doesn't expect the decline to
continue.
Recently released drugs, including diabetes treatment Trulicity
and cancer drug Cyramza, accounted for sales of $325.4 million.
Blockbuster erectile-dysfunction drug Cialis increased its U.S.
revenue by 31% on higher prices, but international sales partially
offset the increase, falling 13% on foreign exchange
fluctuations.
Sales in its animal health division increased 1% to $754.6
million. Lilly bought the animal health unit from Novartis for
about $5.4 billion in 2014.
Like many companies that do significant business abroad, Lilly
said the stronger U.S. dollar hurt sales. Adverse exchange rates
shaved 3% off the top line but increased volume was responsible for
7% revenue growth with an additional 1% growth due to higher
prices.
In all, Lilly reported a profit of $440.1 million, or 41 cents a
share, down from $529.5 million, or 50 cents, a year prior.
Excluding the Venezuelan charge and other certain items, earnings
per share fell to 83 cents from 87 cents.
Revenue grew 4.7% to $4.87 billion. Analysts projected 85 cents
in adjusted per-share profit and $4.82 billion in sales.
Shares, which have fallen 4.9% in the last three months, were
inactive in premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 26, 2016 07:55 ET (11:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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