Pharmaceutical company Eli Lilly (LLY) - Get Report said Friday it will invest $850 million in its U.S. capital projects this year. It marks a $100 million increase from the Indianapolis-headquartered-company's U.S. capital investments last year, according to Lilly spokesman Greg Kueterman.
The $850 million includes a $85 million expansion of the device assembly operations of Trulicity, an injectable medicine for type 2 diabetes.The expansion forms part of a five-year investment by Lilly to grow its diabetes products manufacturing operations in the U.S. Lilly over the last five years has invested about $1.1 billion to boost its diabetes products manufacturing operations in the country, the press release noted.
In the news release, Lilly president and CEO David Ricks said the $850 million investment will finance new projects as well as those that are already underway. During the last decade, Lilly has invested about $5 billion in its U.S. facilities, Ricks said, adding that more investments can be expected, particularly if the U.S. adopts a more favorable tax environment.
"The equitable treatment of foreign earnings, a lower U.S. corporate tax rate, and U.S. innovation incentives-similar to the rest of the world-will encourage significant investment in the U.S., creating economic growth and good jobs for Americans," Ricks said. "The House Republican Blueprint with border adjustability is designed to achieve these priorities, puts America's global companies on a level playing field with competitors around the world, and creates economic growth and employment within the U.S."
Shares of Lilly were trading at $84.17 on Friday, down 0.3%.
Ricks was one of several pharma and biotech executives who visited President Trump at the White House in January. Others included Novartis CEO Joe Jimenez, Merck & Co. Chief Kenneth Frazier and Celgene Chairman Robert Hugin.
Trump has touted these kinds of commitments as an example of his administration's ability to get companies to increase their investment and employment commitments in the U.S.
Lilly in January reported fourth-quarter adjusted profit of 95 cents per share, up 22% from 78 cents per share in the year-ago period. Analysts, on average, were expecting Lilly to earn 98 cents per share, according to FactSet. Lilly generated $5.76 billion in total revenue for the quarter, up 7% year-over-year and slightly better than analysts' consensus forecast.
For full-year 2017, Lilly has forecast adjusted earnings in the $4.05 to $4.15 per share range and revenue between $21.8 billion and $22.3 billion.