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Eli Lilly raises FY guidance after solid first quarter

By BFN News | 02:02 PM | Wednesday 25 April, 2012

Eli Lilly and Co has raised its full-year earnings per share guidance after a solid first quarter. Worldwide revenues fell by 4% to $5.602bn which comprised a 7% fall due to lower volume, partly offset by 4% rise in prices. The company recognised an asset impairment, restructuring and other special charge of $23.8m primarily related to the withdrawal of Xigris. In the first quarter of 2011, the company recognised a charge of $76.3m for restructuring related to severance costs from previously announced strategic actions that the company is taking to reduce its cost structure, as well as a $388.0m in-process research and development charge associated with the diabetes collaboration with Boehringer Ingelheim. Operating income was $1.381bn, an increase of 7% compared to the first quarter of 2011, due primarily to the prior year IPR&D charge mentioned previously, partially offset by decreased revenue as a result of the loss of Zyprexa patent exclusivity. Chairman John Lechleiter said: "Lilly's financial results in the first quarter represent a solid start to the year and support our decision to increase our 2012 EPS guidance. "Notwithstanding the negative effect of the expiration of the Zyprexa patent in the US and many international markets, Lilly demonstrated strong underlying growth in other products and key regions; specifically, Cymbalta, Forteo, Effient, diabetes care and our animal health portfolio, as well as our fast-growing affiliate in China. "We continue to invest appropriately in our pipeline, with 12 potential new medicines now in Phase III clinical trials. We strongly believe that our innovation-based strategy will enable Lilly to return to steady growth following a period of multiple patent expirations." The company has raised its 2012 earnings per share guidance and now expects full-year 2012 earnings per share to be in the range of $3.14 to $3.29 on a reported basis and $3.15 to $3.30 on a non-GAAP basis. Story provided by