Eli Lilly reports EPS in-line, revs in-line; updates FY19 guidance to reflect disposition of Elanco Animal (ELAN)
- Reports Q1 (Mar) earnings of $1.33 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $1.33; revenues rose 2.6% year/year to $5.09 bln vs the $5.12 bln S&P Capital IQ Consensus.
- The increase in revenue was driven by a 7 percent increase due to volume, partially offset by a 3 percent decrease due to lower realized prices, and a 2 percent decrease due to the unfavorable impact of foreign exchange rates.
- Revenue in the U.S. increased 3 percent, to $2.891 billion, driven by increased volume of 6 percent, partially offset by lower realized prices. U.S. volume growth was driven by key growth products, primarily Trulicity®, Taltz, Verzenio®, and Basaglar®, partially offset by significant volume declines for products that have lost exclusivity, including Cialis® and Strattera®.
- Co issues in-line guidance for FY19, sees EPS of $5.60-5.70, excluding non-recurring items, vs. $5.61 S&P Capital IQ Consensus; sees FY19 revs of $22-22.5 bln, excluding non-recurring items, vs. $22.22 bln S&P Capital IQ Consensus.
- Revenue growth is expected to be driven by volume from key growth products including Trulicity, Taltz, Basaglar, Jardiance, Verzenio, Cyramza and Olumiant. Revenue growth is also expected to benefit from the recent launch of Emgality and could benefit from the potential approval and launch of other medicines in 2019. Revenue growth is expected to be partially offset by lower revenue for Cialis and other products that have lost patent exclusivity. Revenue growth is also expected to be partially offset by the negative impact of foreign exchange rates, continued low- to mid-single digit price declines in the U.S. driven primarily by patient affordability programs, rebates and legislated increases to Medicare Part D cost sharing, price declines in some international markets and the impact of the planned Lartruvo withdrawal