Eli Lilly predicts revenue growth in 2016
pharmafile | January 5, 2016 | News story | Research and Development, Sales and Marketing | Eli Lilly, financial reports, marketing, sales
Eli Lilly has set out its financial guidance for 2016, predicting an increase in sales to between $20.2 and $20.7 billion for the coming year, due to the growth of the company’s established and newer products.
Lilly said it expects the revenue growth to come from such established products as Humalog, Trajenta, Cialis, Forteo, Strattera, Erbitux, and animal health products, as well as higher sales of new products including Cyramza, Trulicity, Jardiance, Portrazza, and Basaglar.
Marketing, selling and administrative expenses are expected to be in the range of $6.0 billion to $6.2 billion – more than the company expects to spend on research and development, which is between $4.8 billion and $5.0 billion.
While reaffirming its commitment to grow revenues and expand margins for the remainder of the decade, the company also committed to “sustaining a flow of innovative medicines and deploying capital to create shareholder value.”
John Lechleiter, Lilly’s chairman, president and chief executive, says: “We’ve stayed true to our commitment to innovation, and it’s paying off for patients and shareholders. Lilly continues to deliver on our financial commitments while advancing our pipeline and launching new medicines. We enter 2016 in a position of strength, anticipating continued growth. Our goal is to sustain the flow of valuable medicines from our pipeline to improve patients’ lives and create value for shareholders.”
Derica Rice, Lilly’s executive vice president for global services and chief financial officer, also predicted that 2016 would be an important year for the company’s late-stage assets, as it anticipates regulatory decisions in three therapeutic areas. He comments: “In 2016 we expect multiple regulatory actions across therapeutic areas including diabetes, oncology and immunology. This will be another important year for execution of our innovation-based strategy, which will solidify our near-to medium-term growth prospects.”
2015 results
Lilly also revised down expectations for 2015 earnings per share, which are now expected to be in the range of $2.28 to $2.33 on a reported basis, down from the $2.40 to $2.45 reported in the company’s Q3 financial report. This revision, says Lilly, is due to fourth-quarter after-tax charges associated primarily with the acquisition of worldwide rights to an intranasal glucagon from Locemia Solutions.
In Q3, the company reported year-to-date revenues of $14.583 billion. Fourth-quarter and full-year 2015 financial results will be announced on January 28 2016.
Joel Levy
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