What happened
Shares of Eli Lilly (NYSE: LLY) Tuesday up 6%. The healthy earnings came after the drug company increased its sales and earnings advice for the full year 2020 and provided positive outlook for 2021. Lilly also announced plans to acquire Priority Therapeutics (NASDAQ: PRVL).
And then
Investors love it when a company’s prospects improve. And Lilly’s prediction looked better across the board.
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The pharmaceutical giant now expects sales of between $ 24.2 billion and $ 24.7 billion for 2020, up from the previous guideline from $ 23.7 billion to $ 24.2 billion. Adjusted earnings per share from management projects for the year will be between $ 7.45 and $ 7.65, up from the previous range of $ 7.20 to $ 7.40.
Next year should be even better. Lilly expects sales to be between $ 26.5 billion and $ 28 billion by 2021, with adjusted earnings per share of $ 7.75 to $ 8.40.
Lilly’s optimism stems from continued sales growth within its strong product range. In particular, autoimmune diseases Olumiant and Taltz, diabetes drugs Trulicity and Jardiance, cancer drugs Cyramza, Retevmo, Tyvyt and Verzenio, and migraine medication Emgality are enjoying tremendous speed. Lilly also expects revenue growth of between $ 1 billion and $ 2 billion from its COVID-19 therapies.
The Prevail acquisition for just over $ 1 billion could also be a smart move. With the deal, Lilly will pick up the promising gene therapy candidates from Prevail, which target neurodegenerative diseases.
What now
The large pharma stock does not seem to have any major roadblocks in sight. The Prevail acquisition is not yet complete, but is likely to be completed in the first quarter of 2021.