Lechleiter: Regulations Continue to Cramp Lilly

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INDIANAPOLIS – The chief executive officer of Indianapolis-based Eli Lilly and Co. (NYSE: LLY) is continuing his call for an overhaul of the federal tax code. In particular, John Lechleiter says current rules governing U.S. currency value against others throughout the world are having a negative impact on the pharmaceutical company’s bottom line. Lechleiter made the remarks this morning during a conference call detailing Lilly’s 2016 outlook and lowering the guidance for its forthcoming 2015 financial results. Lechleiter says he’s optimistic about the future as Lilly continues to emerge from a period of major patent protection losses.
Lechleiter says "we’re disadvantaged by the U.S. tax system" and need to put companies on a more even field with global competitors, particularly when it comes to companies seeking an inversion.
Lilly stocks were viewed favorably by traders this morning on news that the company was lowering its earnings per share to between $2.28 and $2.33, which was mainly attributed to the previously-announced acquisition of rights to a diabetes treatment from Canada-based Locemia Solutions. For 2016, the company projects revenue will total between $20.2 billion and $20.7 billion.
During the conference call this morning, Chief Financial Officer Derica Rice said the company is transitioning to growth the continued momentum re-enforces Lilly’s "big bet on innovation." He says he expects continued "headwinds" in the year ahead, but also projects growth in many areas of the portfolio, including Greenfield-based Elanco.
Lilly’s fourth quarter and full-year 2015 financial results are set to be released January 28. You can connect to more about the company’s forecast by clicking here.
However, he adds “if we’re disadvantaged, we’re disadvantaged by the U.S. tax system.”