Eli Lilly and Co. reported a 61 percent increase in profit for the fourth quarter from last year, reflecting higher revenues as well as lower acquired in-process research and development charges.
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Looking ahead, the company lowered its outlook for fiscal 2017 earnings on a reported basis, but affirmed its forecast for adjusted earnings and revenue.
Eli Lilly's net income for the fourth quarter rose to $771.8 million from last year's $478.4 million. Earnings per share increased to $0.73 from $0.45 a year ago.
Excluding certain items, adjusted net income was $1.01 billion or $0.95 per share, compared to $828.2 million or $0.78 per share in the prior year.
On average, 16 analysts polled by Thomson Reuters expected earnings of $0.98 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 7 percent to $5.76 billion from $5.38 billion in the same period last year. Analysts were looking for revenues of $5.55 billion.
The increase in revenue was driven by an 8 percent increase in volume, 1 percent favorable impact of foreign exchange rates and a realized price decrease of 1 percent, primarily due to lower realized prices outside the U.S.
Operating expenses for the quarter remained flat with last year at $3.24 billion.
Revenue in the U.S. increased 14 percent to $3.22 billion, driven by increased volumes for Trulicity, Humalog, Taltz, Jardiance, Humulin and companion animal products.
Meanwhile, revenue outside the U.S. decreased 1 percent to $2.54 billion, reflecting lower realized prices and volume from the loss of exclusivity for Alimta in several countries, Zyprexa in Japan, and Cymbalta in Europe and Canada. These were largely offset by increased volume for several new pharmaceutical products.
Looking ahead to fiscal 2017, Eli Lilly now forecasts earnings in a range of $2.69 to $2.79 per share on a reported basis, primarily due to the estimated acquired in-process research and development charge related to the planned acquisition of CoLucid Pharmaceuticals. Earlier, the company forecast reported earnings of $3.51 to $3.61 per share.
However, the company affirmed its outlook for full-year adjusted earnings per share in a range of $4.05 to $4.15 and revenue between $21.8 billion and $22.3 billion. ■