Lilly Expects Earnings Growth in 2010 - TheStreet

Updated from 6:57 a.m. EST



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Eli Lilly

(LLY) - Get Report

expects 2010 earnings of $4.65 to $4.85 a share, guidance that brackets the estimate of analysts of $4.74 a share.

Lilly said its forecast excludes the potential impact of health care reform in the U.S.

Lilly said it expects volume-driven revenue growth in the high-single digits, driven primarily by products Alimta, Cymbalta, Humalog, Cialis, Effient and the exenatide franchise.

The drugmaker said it plans to launch two new medicines a year starting in 2013. Lilly said it currently has more than 60 molecules in clinical development, including 25 in mid- and late-stage development.

Lilly anticipates gross margin as a percent of revenue will be flat to lower in 2010. Excluding the effect of foreign exchange rates on international inventories sold, the company said it expects gross margin as a percent of revenue to increase.

Lilly said "cash flows are expected to be sufficient" to fund capital expenses of about $1 billion, "anticipated business development activity and the company's dividend."

The company also said it anticipates annual revenue during the major patent expiry years of 2012 to 2014 of at least $20 billion, and gross margins as a percent of revenue could be between 75% and 80%.

The company, in a press release Thursday, also confirmed its 2009 earnings outlook of $4.30 to $4.40 a share on an adjusted basis.

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-- Reported by Joseph Woelfel in New York.

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