Drugmaker Lilly beats Street 2Q forecasts, raises outlook
INDIANAPOLIS (AP) — Eli Lilly topped Wall Street’s second-quarter expectations and raised its 2017 forecast, but the drugmaker also announced a delay in the resubmission of a potential new drug to regulators.
Lilly said Tuesday that it will be at least 18 months before the company resubmits baricitinib to the Food and Drug Administration for approval. The agency has asked for another study on the drug, and Lilly says it is talking with regulators about next steps.
Baricitinib aims to treat moderate to severe rheumatoid arthritis, a chronic inflammatory disease that affects the joints and destroys soft tissue, cartilage and bone. Lilly bought the potential drug from Incyte in 2009 and is leading its development. It has already been approved in Europe and Japan.
In the second quarter, Indianapolis-based Lilly’s earnings jumped 35 percent to $1.01 billion. Earnings, adjusted for restructuring costs, totaled $1.11 per share. Revenue grew 8 percent to $5.82 billion.
Analysts expected, on average, earnings of $1.04 per share on $5.59 billion in revenue, according to Zacks Investment Research.
Eli Lilly and Co. also raised both ends of its 2017 earnings-per-share forecast range by a nickel. It now expects adjusted earnings to range between $4.10 and $4.20 per share.
Analysts expect, on average, earnings of $4.12 per share, according to FactSet.
Company shares slipped 24 cents to $84.50 in early morning trading.
Lilly’s stock has climbed 15 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 10 percent.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LLY at https://www.zacks.com/ap/LLY
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