Lilly Comments on 2011 Financial Guidance and Announces 2012 Financial Guidance
- Company expects to meet or exceed 2011 EPS guidance.
- 2012 financial guidance reflects revenue and earnings declines due to Zyprexa patent expiration.
- 2012 revenue anticipated to be between
$21.8 billion and $22.8 billion . - Company expects to keep 2012 operating expenses essentially flat versus 2011.
- 2012 earnings per share forecasted to be in the range of
$3.10 - $3.20 . - R&D pipeline includes 12 molecules in Phase III development at end of 2011, exceeding goal of 10.
- Mid-term guidance through 2014 reconfirmed with minimum annual results of at least
$20 billion in revenue,$3 billion in net income and$4 billion in operating cash flow. - Company reaffirms commitment to fund dividend at least at current level.
For 2011, the company expects to meet or exceed its current earnings per share guidance. 2011 EPS guidance is currently in the range of
"2012 is an important year for Lilly, having entered the period when we face patent expirations on some of our largest products, most notably Zyprexa® late last year and Cymbalta® in the U.S. at the end of 2013," said
"Our 2012 financial guidance reflects the three key elements of our bridging strategy," continued Lechleiter. "First and foremost, we are replenishing and advancing our pipeline. We've successfully rebuilt our mid- to late-stage pipeline to position Lilly for growth post-2014, with 12 assets now in Phase III, exceeding our goal of 10 by the end of 2011. We continue to revamp our discovery efforts to ensure a more sustainable flow of innovation for the long-term. Second, we're investing to drive growth in the key brands that don't lose patent protection during this period and in our countercyclical growth engines that don't have the same cycle of patent expirations as our U.S. and European pharmaceutical businesses. These include
2012 Financial Guidance
The company expects full-year 2012 earnings per share to be in the range of
The company anticipates 2012 revenue of between
The company anticipates that gross margin as a percent of revenue will be approximately 77 percent.
As a result of ongoing productivity efforts, the company expects to keep operating expenses essentially flat compared to 2011. Marketing, selling and administrative expenses are expected to be flat to declining and in the range of
Other income and deductions is expected to be in a range between net expense of
The 2012 tax rate is expected to be approximately 21 percent, and assumes the extension of the R&D tax credit for the full year 2012.
Operating cash flows are expected to be more than sufficient to fund capital expenditures of approximately
Webcast of Conference Call
As previously announced, investors, media and the general public can access a live webcast of the 2012 financial guidance conference call through a link on Lilly's website at www.investor.lilly.com. The conference call will be held today beginning at
Lilly, a leading innovation-driven corporation, is developing a growing portfolio of pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in
F-LLY
This press release contains forward-looking statements that are based on management's current expectations, but actual results may differ materially due to various factors. There are significant risks and uncertainties in pharmaceutical research and development. There can be no guarantees with respect to pipeline products that the products will receive the necessary clinical and manufacturing regulatory approvals or that they will prove to be commercially successful. Pharmaceutical products can develop unexpected safety or efficacy concerns. The company's results may also be affected by such factors as competitive developments affecting current products, including the impact of generic competition; market uptake of recently-launched products; the timing of anticipated regulatory approvals and launches of new products; regulatory actions regarding currently marketed products; issues
with product supply; regulatory changes or other developments; regulatory compliance problems or government investigations; patent disputes; changes in patent law or regulations related to data-package exclusivity; other litigation involving current or future products; the impact of governmental actions regarding pricing, importation, and reimbursement for pharmaceuticals, including U.S. health care reform; changes in tax law; asset impairments and restructuring charges; acquisitions and business development transactions; and the impact of exchange rates and global macroeconomic conditions. For additional information about the factors that affect the company's business, please see the company's latest Form 10-Q and Form 10-K filed with the
Alimta® (pemetrexed, Lilly)
Axiron® (testosterone,
Cialis® (tadalafil, Lilly)
Cymbalta® (duloxetine hydrochloride, Lilly)
Effient® (prasugrel, Lilly)
Forteo® (teriparatide [rDNA origin] injection, Lilly)
Humalog® (insulin lispro injection of recombinant DNA origin, Lilly)
Humulin® (human insulin of recombinant DNA origin, Lilly)
Tradjenta® (linagliptin, Boehringer Ingelheim)
Xigris® (drotrecogin alfa (activated)), Lilly
Zyprexa® (olanzapine, Lilly)
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