Lilly Provides 2017 Financial Guidance and 2016 Update, Reaffirms Financial Expectations Through the Remainder of the Decade
"As we move past the negative solanezumab data read-out, Lilly's innovation-based strategy is generating strong momentum in multiple therapeutic areas. Most recently we have received an important cardiovascular indication for Jardiance, as well as
Ricks added, "We are already seeing substantial revenue from recently launched products, including Trulicity and Cyramza, and we are pleased with early uptake for Taltz. We remain confident that we could launch at least 20 new products in 10 years from 2014 through 2023, creating value for all stakeholders in the company."
"Because of our confidence in our future growth prospects, we are reaffirming our financial commitments through the remainder of the decade," said
2016 Financial Guidance
Earnings per share in 2016 are now expected to be in the range of
Non-GAAP earnings per share in 2016 are still expected to be in the range of
2016 Expectations |
||
Earnings per share (reported) |
|
|
Amortization of intangible assets |
.44 |
|
Asset impairment, restructuring and other special charges, including |
.28 |
|
|
.19 |
|
Acquired in-process research and development charges |
.02 |
|
Earnings per share (non-GAAP) |
|
|
The company still expects 2016 revenue of between
Gross margin percentage is now expected to be approximately 73.5 percent on a reported basis, and 76.5 percent on a non-GAAP basis.
Marketing, selling and administrative expenses are still expected to be in the range of
Other income (expense) is still expected to be in a range between
The 2016 tax rate is now expected to be approximately 20.5 percent on a reported basis. On a non-GAAP basis, the 2016 tax rate is still expected to be approximately 21.0 percent.
Capital expenditures are still expected to be approximately
The following table summarizes the company's 2016 financial guidance:
2016 Guidance | |||
Prior |
Revised | ||
Revenue |
|
Unchanged | |
Gross Margin % of Revenue (reported) |
Approx. 73.0% |
Approx. 73.5% | |
Gross Margin % of Revenue (non-GAAP) |
Approx. 76.0% |
Approx. 76.5% | |
Marketing, Selling & Administrative |
|
Unchanged | |
Research & Development |
|
| |
Other Income/(Expense) (reported) |
|
Unchanged | |
Other Income/(Expense) (non-GAAP) |
|
Unchanged | |
Tax Rate (reported) |
Approx. 21.0% |
Approx. 20.5% | |
Tax Rate (non-GAAP) |
Approx. 21.0% |
Unchanged | |
Earnings per share (reported) |
|
| |
Earnings per share (non-GAAP) |
|
Unchanged | |
Capital Expenditures |
Approx. |
Unchanged | |
Non-GAAP adjustments are consistent with the earnings per share table above. |
2017 Financial Guidance
Earnings per share for 2017 are expected to be in the range of
2017 |
||
Earnings per share (reported) |
|
|
Amortization of intangible assets |
.45 |
|
Inventory step-up costs associated with the planned |
.06 |
|
|
.03 |
|
Earnings per share (non-GAAP) |
|
|
Amortization and inventory step-up costs associated with the planned acquisition of |
The company anticipates 2017 revenue between
Marketing, selling and administrative expenses are expected to be in the range of
The 2017 tax rate is expected to be approximately 20.0 percent on a reported basis and 22.0 percent on a non-GAAP basis. The expected 2017 reported tax rate includes the tax impact of amortization of intangibles, inventory step-up costs associated with the planned acquisition of
The following table summarizes the company's 2017 financial guidance.
2017 Guidance | |||
Reported |
Non-GAAP | ||
Revenue |
|
| |
Gross Margin % of Revenue |
Approx. 73.5% |
Approx. 77.0% | |
Marketing, Selling & Administrative |
|
| |
Research & Development |
|
| |
Other Income/(Expense) |
|
| |
Tax Rate |
Approx. 20.0% |
Approx. 22.0% | |
Earnings per Share |
|
| |
Capital Expenditures |
Approx. |
Approx. | |
Non-GAAP adjustments are consistent with the earnings per share table above. | |||
Webcast of Conference Call and Investor Materials
As previously announced, investors and the general public can access a live webcast of the 2017 financial guidance conference call and investor materials through a link on Lilly's website at www.investor.lilly.com. The conference call will be held today beginning at
Lilly is a global healthcare leader that unites caring with discovery to make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and voluntarism. To learn more about Lilly, please visit us at www.lilly.com and http://newsroom.lilly.com/social-channels. F-LLY
This press release contains management's current intentions and expectations for the future, all of which are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "estimate," "project," "intend," "expect," "believe," "target," "anticipate," and similar expressions are intended to identify forward-looking statements. Actual results may differ materially from these forward-looking statements due to various factors. There are significant risks and uncertainties in pharmaceutical research and development. There can be no guarantees that pipeline products will succeed in clinical testing, will receive the necessary clinical and manufacturing regulatory approvals, or will prove to be commercially successful. The company's results may also be affected by such factors as the timing of
anticipated regulatory approvals and launches of new products; market uptake of recently launched products; competitive developments affecting current products; the expiration of intellectual property protection for certain of the company's products; the company's ability to protect and enforce patents and other intellectual property; the impact of governmental actions regarding pricing, importation, and reimbursement for pharmaceuticals, including
Basaglar® (insulin glargine injection, Lilly)
Cyramza® (ramucirumab, Lilly)
Forteo® (teriparatide of recombinant DNA origin injection, Lilly)
Humalog® (insulin lispro injection of recombinant DNA origin, Lilly)
Jardiance® (empagliflozin, Boehringer Ingelheim)
LartruvoTM (olaratumab, Lilly)
Taltz® (ixekizumab, Lilly)
Trajenta® (linagliptin, Boehringer Ingelheim)
Trulicity® (dulaglutide, Lilly)
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