Eli Lilly Forecasts Profit, Revenue Drop In 2014
Eli Lilly and Co. expects a sharp drop in both earnings and revenue next year, as the drug developer deals with the loss of patents protecting two more key drugs from cheaper generic competition.
The Indianapolis company forecast on Tuesday earnings of between $2.77 and $2.85 per share in 2014, a decrease of more than 30 percent from the range of $4.10 to $4.15 per share that it expects to report for 2013.
The company also expects revenue ranging from $19.2 billion to $19.8 billion in the new year, compared to its forecast of $22.6 billion to $23.4 billion for 2013. Lilly will announce its 2013 results on Jan. 30.
The drugmaker known for its portfolio of cancer and diabetes treatments has long warned of an impending dip in performance due to patent expirations. Its 2014 forecast generated little surprise on Wall Street. Analysts expect, on average, 2014 earnings of $2.78 per share on $19.56 billion in revenue, according to FactSet.