By Michael Calia
Eli Lilly and Co. offered an outlook for this year that fell
below analysts' expectations, while the pharmaceutical company
unveiled a growth strategy reliant on treatments for diabetes and
cancer patients, as well as for animals.
The company said it expected to generate per-share earnings of
$3.10 to $3.20 and revenue of $20.3 billion to $20.8 billion this
year. Analysts polled by Thomson Reuters had projected $3.22 and
$20.87 billion, respectively.
Shares of Eli Lilly fell more than 3% in recent premarket
trading.
With patents expiring and generic competition growing, Lilly has
sought to bolster its business development both with a growing
pipeline and an expanding animal-health division.
"We are successfully moving from a challenging period of patent
expirations to a period of resumed growth, led by diabetes,
oncology and animal health," Chief Executive John C. Lechleiter
said in a news release.
The company completed its $5.4 billion acquisition of Novartis
AG's animal-health division about a week ago, capping a series of
acquisitions in the field.
Lilly on Wednesday said it expects its first wave of revenue
growth to come from product launches in the animal health, oncology
and diabetes fields. The second wave, the company added, is
expected to come from launches for cardiovascular disease,
Alzheimer's disease, pain and other oncology products.
Lilly also said it would focus the product and revenue strategy
on key areas such as China, Japan, the U.S. and other select
markets.
The company also said that it plans to cut its operating
expenses to 50% of revenue or less by the end of 2018.
Write to Michael Calia at michael.calia@wsj.com
Access Investor Kit for Novartis AG
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=CH0012005267
Access Investor Kit for Eli Lilly & Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US5324571083
Access Investor Kit for Novartis AG
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US66987V1098
Subscribe to WSJ: http://online.wsj.com?mod=djnwires