Eli Lilly Q1 earnings miss estimates, ups FY view; shares drop 2%
Shares in US drugmaker Eli Lilly (NYSE: LLY) dropped to close down over 2% Tuesday after the company posted first-quarter earnings below expectations but raised its outlook for the full year.
However, the company reported a 5% rise in first-quarter sales beating estimates driven by revenue from the two new diabetes drugs.
The company posted revenue of $4.87 billion helped by sales of two new diabetes therapies called Trulicity and Jardiance, as well as the cancer medicine Cyramza. Eli Lilly said sales were hurt by strong dollar in currency terms.
Chief Executive John Lechleiter said: “Revenue growth in the first quarter reflects substantial progress in launching new products, including Trulicity, Cyramza, Jardiance, Basaglar and Portrazza. In addition, we recently launched Taltz in the US, following its FDA approval last month. Several other potential products are currently under regulatory review, including olaratumab and baricitinib. Clearly, our innovation strategy is paying off, for the benefit of patients as well as shareholders.”
The company reported first quarter net income of $440 million, or 41 cents per share against $530 million, or 50 cents per share, a year ago. Earnings were hit by a $203.9 million charge related to the impact of the Venezuelan financial crisis, the company said in a statement.
For the full-year, the drug firm now sees full-year earnings, excluding special items, of $3.50 to $3.60 per share up from the earlier forecast of $3.45 to $3.55 per share.
Eli Lilly saw revenue of $325.4 million from recently launched products. Sales from Trulicity stood at $143.6 million against $18.3 million a year earlier, while revenue from Cyramza nearly doubled to $131.0 million. Sales of Jardiance in the three-month period doubled to $38.2 million.
The company also spent more than $1.2 billion in R&D in the first quarter.
Shares in the company closed down over 2% to $76.25 Tuesday on the New York stock Exchange.
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