Eli Lilly Boosts Full-Year Guidance as Second-Quarter Results Beat Views

Eli Lilly (LLY) on Tuesday raised its full-year guidance as the pharmaceutical company posted better-than-expected second-quarter results that were driven higher by the sales of its string of treatments that were introduced five years ago.

The Indianapolis-based company said it now expects 2019 non-GAAP per-share earnings between $5.67 and $5.77, up from its April estimate of $5.60 to $5.70. It still expects 2019 revenue of between $22 billion and $22.5 billion while Capital IQ’s consensus is for $22.18 billion.

“Revenue growth is expected to be driven by volume from key growth products including Trulicity, Taltz, Basaglar, Jardiance, Verzenio, Cyramza and Olumiant,” the company said of the products that launched since 2014. Sales are expected to benefit from its recent launch of Emgality, Lilly added.

For the just-ended quarter, revenue rose to $5.64 billion from $5.59 billion in the prior-year quarter and ahead of the Capital IQ view of $5.59 billion. Adjusted per-share earnings rose to $1.50, up two cents from last year and above the Street’s expectations of $1.45.

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“Lilly’s portfolio of newer medicines reached more patients in the second quarter, allowing the company to grow revenue despite headwinds, including the expiration of the US patent for Cialis,” said David Ricks, Lilly’s chief executive. “We are continuing to make significant investments in our business to ensure the success of our recent product launches. At the same time, we are expanding investment in or pipeline in order to develop new medicines that have the potential to more effectively treat patients that have diabetes, cancer, autoimmune disorders and other serious conditions.”

The company said US revenue was flat in the June quarter at $3.25 billion on increased volume of 5% that was offset by lower realized prices. Higher volume for key growth products was offset by decreases treatments that have lost exclusivity, including Cialis and Adcira.