2013 earnings will increase, says Lilly CEO

Hannah Blake

pharmaphorum

Eli Lilly has revealed its financial guidance for 2013, announcing that it expects its 2013 earnings to increase to US $3.75 to $3.90 per share, excluding items from $3.30 to $3.40 per share in 2012.

Derica Rice, Lilly’s executive vice president, global services and chief financial officer, commented on the 2013 guidance, stating that from now until 2014 the company expects annual revenue to be at least US $20 billion, with net income at US $3 million and the company’s operating cash flow to be at least $4 billion.

A tax benefit the company expected to book in 2012 has been pushed into 2013, but will be excluded from its outlook.

"At Lilly, we continue to implement the three primary elements of our strategy to bridge our current period of patent expirations and return to sustainable growth. We have made substantial progress in recent years and expect 2013 to continue that trend. We are replenishing and advancing our pipeline, which now has 13 potential new medicines in Phase III testing. We are investing to drive growth in key currently marketed brands and in our counter-cyclical growth areas, and we continue to make productivity gains across our business to fund the R&amp,D necessary to fuel our future growth, recapitalize our physical assets, maintain our dividend and support our share repurchase program. We believe our strategy is the right one for Lilly and one that will continue to create value for all of our stakeholders."

John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer.

Lilly expects strong growth this year through sales driven by a portfolio of products including diabetes treatments Humalog (insulin lispro) and Humulin (insulin isophane and insulin regular), as well as osteoporosis medicine Forteo (Teriparatide) and chemotherapy drug Alimta (Pemetrexed). In addition, the pharma company excpects significant revenue growth in Japan and the emerging markets, particularly China.