Eli Lilly and Company (LLY) said it delivered solid financial results in the third quarter, as the company’s key growth products continued to be the catalyst for volume-based revenue growth. On a non-GAAP basis, earnings per share increased 4 percent. Revenue rose 5 percent driven by volume growth of 9 percent. The company reaffirmed its earnings per share guidance for 2020 on a non-GAAP basis.
Third quarter non GAAP earnings per share was $1.54 compared to $1.48, a year ago. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $1.71 for the quarter. Analysts’ estimates typically exclude special items. The company said the increase was driven primarily by higher other income and higher gross margin, partially offset by higher marketing and research and development expenses and, to a lesser extent, higher income tax expense.
Third quarter worldwide revenue were $5.74 billion, an increase of 5 percent from last year, driven by a 9 percent increase in volume and a 1 percent increase due to the favorable impact of foreign exchange rates, partially offset by a 5 percent decrease due to lower realized prices. Third-quarter operating expenses increased 9 percent, driven by higher marketing and research and development investments, including expenses of $125 million to develop potential COVID-19 therapies. Analysts expected revenue of $5.91 billion for the quarter.
Third-quarter worldwide Trulicity revenue was $1.107 billion, an increase of 9 percent from prior year. Humalog revenue rose 1 percent to $656.9 million. Alimta revenue was up 14 percent to $578.0 million. Taltz revenue increased 34 percent to $454.5 million.
Lilly said it continues to rapidly advance the development of potential therapeutics for the treatment of COVID-19 and has submitted requests for Emergency Use Authorization to the FDA for both bamlanivimab and baricitinib. The company expects 2020 COVID-19 research and development expense to be approximately $400 million.
For 2020, Eli Lilly still projects earnings per share to be in the range of $7.20 to $7.40 on a non-GAAP basis. The company lowered earnings per share outlook on a reported basis to a range of $6.20 to $6.40. The company still expects revenue between $23.7 billion and $24.2 billion. Analysts expect the company to report profit per share of $7.28 on revenue of $23.91 billion.
Shares of Eli Lilly were down nearly 5% in pre-market trade on Tuesday.
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