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FILE - This April 26, 2017 file photo shows the Eli Lilly & Co. corporate headquarters in Indianapolis. Shares of Eli Lilly slipped in early trading Wednesday, Feb. 6, 2019, after the drugmaker announced fourth-quarter earnings that missed Wall Street expectations and dropped its forecast for 2019. Lilly says it revised its outlook due to the recently announced failure of the cancer treatment Lartruvo in a late-stage clinical trial and a pending acquisition.(AP Photo/Darron Cummings)

Lilly lowers 2019 forecast due to drug failure, pending deal

 By The Associated Press  February 6, 2019 at 5:54am
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INDIANAPOLIS (AP) — Shares of Eli Lilly slipped in early trading Wednesday after the drugmaker announced fourth-quarter earnings that missed Wall Street expectations and dropped its forecast for 2019.

Lilly says it revised its outlook due to the recently announced failure of the cancer treatment Lartruvo in a late-stage clinical trial and a pending acquisition. Lilly announced last month that it would spend about $8 billion in cash to buy Loxo Oncology, as the drugmaker bulks up on cancer treatments that target certain gene abnormalities.

The company now expects 2019 adjusted earnings to range from $5.55 to $5.65 per share, down from a forecast it made in December for between $5.90 and $6 per share.

Analysts expect, on average, $5.70 per share, according to FactSet.

In the fourth quarter, the maker of the insulin Humalog posted $1.13 billion in net income, with earnings adjusted for one-time gains and costs of $1.33 per share. Revenue climbed 5 percent to $6.44 billion.

The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.36 per share.

Shares of Eli Lilly and Co. slipped $1.93 to $118.50 in pre-market trading. The Indianapolis company’s stock has climbed 4 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased 9 percent. The stock has climbed 55 percent in the last 12 months.

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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

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

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The Associated Press
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

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