Eli Lilly (NYSE:LLY) & Co. has adjusted its full-year earnings forecast, attributing the change to higher in-process R&D (IPR&D) costs from recent acquisitions. The pharmaceutical giant now anticipates an adjusted EPS of $6.50-$6.70 for 2023, down from the initial projection of $9.70-$9.90. This comes despite a strong Q3 performance that saw the firm post a surprise profit and robust sales growth.
The company's Q3 report showed an adjusted EPS of 10 cents, outperforming analysts' projected 18-cent loss per share. Revenue rose 37% to $9.50 billion, surpassing consensus. The significant sales growth was driven by Mounjaro, Verzenio, and Jardiance, with substantial contributions from the olanzapine portfolio and Mounjaro sales.
However, despite the strong performance, Eli Lilly swung to a net loss of $57.4 million from a net income of $1.45 billion last year due to acquired IPR&D charges associated with recent acquisitions including DICE Therapeutics, Versanis Bio, and Sigilon Therapeutics.
In contrast to the overall sales growth, Trulicity revenues were down 10% YoY at $1.674 billion.
Looking ahead, Eli Lilly expects regulatory approval for obesity treatment Tirzepatide and an FDA decision on Alzheimer’s treatment Donanemab, which could compete with products from Biogen Inc (NASDAQ:BIIB)., Eisai Co (OTC:ESAIY). Ltd.'s Leqembi. The company also reported higher realized prices amid lower use of savings card programs for Mounjaro.
InvestingPro Insights
InvestingPro's real-time data and tips provide a deeper understanding of Eli Lilly's financial standing and future prospects. According to InvestingPro, Eli Lilly has a notable market cap of 531580.0M USD and a P/E Ratio of 77.15, indicating the company's significant size and investor expectations for future earnings growth. In the last twelve months as of Q2 2023, the company achieved a revenue of 29515.5M USD, showing robust business operations.
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