Eli Lilly Revenue Boosted By New Drug Sales

By Austen Hufford 

Eli Lilly Co. said revenue rose in its latest quarter as sales of new drugs helped offset declines in some established products.

Lilly also cut its profit forecast for the year, citing the Venezuelan financial crisis and a resulting $203.9 million accounting charge. Lilly now expects annual earnings per share of $2.68 to $2.78, down from the $2.83 to $2.93 it previously expected. Still, the company increased its revenue guidance, saying it now expects annual revenue of between $20.6 billion and $21.1 billion, up from the $20.2 billion and $20.7 billion it reported previously.

Sales of Humalog, Lilly's biggest product by revenue, fell 11% to $606.3 million as the company had lower realized prices which was partially offset by increased demand of the diabetes drug. The price decrease was related to changes in rebates and discount estimates and the company doesn't expect the decline to continue.

Recently released drugs, including diabetes treatment Trulicity and cancer drug Cyramza, accounted for sales of $325.4 million.

Blockbuster erectile-dysfunction drug Cialis increased its U.S. revenue by 31% on higher prices, but international sales partially offset the increase, falling 13% on foreign exchange fluctuations.

Sales in its animal health division increased 1% to $754.6 million. Lilly bought the animal health unit from Novartis for about $5.4 billion in 2014.

Like many companies that do significant business abroad, Lilly said the stronger U.S. dollar hurt sales. Adverse exchange rates shaved 3% off the top line but increased volume was responsible for 7% revenue growth with an additional 1% growth due to higher prices.

In all, Lilly reported a profit of $440.1 million, or 41 cents a share, down from $529.5 million, or 50 cents, a year prior. Excluding the Venezuelan charge and other certain items, earnings per share fell to 83 cents from 87 cents.

Revenue grew 4.7% to $4.87 billion. Analysts projected 85 cents in adjusted per-share profit and $4.82 billion in sales.

Shares, which have fallen 4.9% in the last three months, were inactive in premarket trading.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

April 26, 2016 07:37 ET (11:37 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.