Indianapolis-based Eli Lilly and Co. (NYSE: LLY) is reporting a fourth quarter loss of $1.7 billion, compared to net income of $772 million in the same quarter a year earlier. However, when special items including recently-passed tax reform are accounted for, the company earned $1.2 billion, beating Wall Street estimates. The results, the pharmaceutical maker says, were also affected by more than $1 billion in charges mainly associated with a previously-announced, comprehensive restructuring. Lilly is also adjusting its 2018 guidance upward.
In November, Lilly said it was on-track to realize its expected savings through changes that include letting go some 3,500 workers.
Revenue for the fourth quarter and full-year were both on the rise to $6.2 billion and $22.9 billion, respectively, from $5.8 billion and $21.2 billion, respectively. The company is also reporting full-year net income of $204 million, compared to $2.7 billion in 2016.
Chief Executive Officer Dave Ricks focused on advances in Lilly’s pipeline. "Lilly’s new products, including Trulicity, Taltz and Jardiance, continued to drive solid revenue growth in the fourth quarter of 2017, while we maintained flat operating expenses," he said. "Momentum continues for our innovation-based strategy. We recently received approval for Taltz in the U.S. and European Union for active psoriatic arthritis, are encouraged by early use of Verzenio for breast cancer and expect further pipeline progress in 2018 in areas of significant patient need, including cancer, immunologic disorders, diabetes, neurodegeneration and pain."
Lilly projects 2018 revenue to be between $23 billion and $23.5 billion and boosted its expected earnings per share for 2018 to a range of $4.39 to $4.49, which it says reflects estimated impact from U.S. tax reform.
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