Eli Lilly Reduces FY22 Earnings Guidance; Revenue Outlook Remains Unchanged

Eli Lilly and Company (LLY) has lowered its 2022 reported EPS guidance by $0.34 to now be in the range of $6.96 to $7.11 and lowered non-GAAP EPS guidance by $0.25 to now be in the range of $7.90 to $8.05. The company said the $0.25 reduction in the non-GAAP EPS range is driven entirely from the impact of foreign exchange rates.

The company still anticipates 2022 revenue to be between $28.8 billion and $29.3 billion. This includes an additional $400 million of unfavorability from foreign exchange rates, offset by additional revenue from the COVID-19 antibody, bebtelovimab. The additional revenue from bebtelovimab is inclusive of $275 million from the U.S. government purchase agreement announced in June 2022 as well as estimated revenue from the commencement of non-U.S. government distribution.

Analysts polled by Thomson Reuters expect the company to report profit per share of $8.08 on revenue of $28.27 billion. Analysts’ estimates typically exclude special items.

On a non-GAAP basis, second quarter net income and EPS were $1.13 billion and $1.25, respectively, compared with $1.68 billion and $1.85, a year ago. The company noted that second quarter 2022 non-GAAP EPS was inclusive of $0.46 of acquired IPR&D and development milestone charges, compared with $0.04 in prior year. On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $1.68, for the quarter.

Net income and earnings per share were $952.5 million and $1.05, respectively, compared with $1.39 billion and $1.53, last year.

Worldwide revenue was $6.49 billion, a decrease of 4% from a year ago, driven by an 11% decrease due to lower realized prices and a 3% decrease from the unfavorable impact of foreign exchange rates, partially offset by a 10% increase in volume. Excluding revenue from Alimta, which lost exclusivity in major markets, sale of the rights to Cialis in China in second quarter 2021, and COVID-19 antibodies, worldwide revenue increased 6%, for the quarter. Analysts on average had estimated $6.67 billion in revenue.

“The inclusion of acquired in-process research and development and development milestone charges in our non-GAAP results will continue to impact comparisons to prior years,” Lilly CFO Anat Ashkenazi noted.

Also, Eli Lilly said the FDA has accepted, with Priority Review designation, donanemab for Alzheimer’s disease for review under the accelerated approval pathway. The FDA accepted, with Priority Review designation, pirtobrutinib for mantle cell lymphoma for patients previously treated with a BTK inhibitor for review under the accelerated approval pathway.

Shares of Eli Lilly are down 4% in pre-market trade on Thursday.

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