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Eli Lilly Stock Gains After2021 Outlook Lift Following Q3 Earnings

Eli Lilly boosted its 2021 profit outlook after stronger-than-expected third quarter sales offset softer profits linked to higher research and development costs.

Eli Lilly & Co.  (LLY) - Get Eli Lilly and Company (LLY) Report posted softer-than-expected third quarter earnings Tuesday, but boosted its full-year sales and profit outlook thanks to the success of its drug pipeline and big revenue gains from its newer medicines. 

The stock traded lower, however, after the drugmaker told investors on a conference call that it expects "minimal" revenues from its COIVD-19 therapies in 2022. 

Eli Lilly said adjusted profits for the three months ending in September were pegged at $1.94 per share, a 26% increase from the same period last year but just shy of the Street consensus forecast of $1.98 per share. Group revenues, Eli Lilly said, rose 18% from last year to $6.773 billion, topping analysts' forecasts of a $6.64 billion tally.

Looking into the final months of the year, Eli Lilly said it sees non-GAAP earnings improving to a range of $7.95 to $8.05 per share, a 15 cent boost from the lower end of its prior forecast, with revenues in the region of $27.2 billion to $27.6 billion, up from a prior forecast of $26.8 billion to $27.4 billion. 

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"Lilly demonstrated strong performance again this quarter. Revenue attributable to our newer medicines grew more than 35% and represented nearly 60% of our core business, an important indicator of our long-term growth potential," said CEO David Ricks. "With numerous positive pipeline events this quarter, we have the potential to continue to expand the number of patients we serve through new indications for both Verzenio and Jardiance."

"We also progressed innovative, potential best-in-class treatment options in areas with high unmet need through a regulatory submission for tirzepatide in diabetes, the initiation of a rolling submission for donanemab in early Alzheimer's disease, the submission of Jardiance in HFpEF, and positive Phase 3 results for lebrikizumab in patients with atopic dermatitis," he added.  

Eli Lilly shares were marked 1% higher in early afternoon trading following the earnings release to change hands at $247.50 each.

Worldwide sales of its COVID antibody treatment hit $217 million Eli Lilly said, up 45% from the prior period. Trulicity, the group's blockbuster diabetes treatment, notched $1.6 billion in global sales, a 45% increase from last year.

Earlier in the quarter, Eli Lilly it will file seek approval for its donanemab Alzheimer's treatment from the Food & Drug Administration later this year, adding that phase 4 trial data could follow its accelerated approval in the second half of next year.