Eli Lilly (LLY) shares slid on Wednesday after the pharmaceutical company posted third-quarter revenue that missed expectations even as it raised its full-year earnings guidance.
The Indianapolis-based company said it expects non-GAAP per-share earnings between $5.75 and $5.85 for fiscal 2019, up from its July guidance of $5.67 to $5.77. The consensus compiled by Capital IQ is for $5.72.
For the quarter ended Sept. 30, revenue rose to $5.48 billion from $5.31 billion in the prior-year quarter but below the Street’s view for $5.5 billion. Non-GAAP EPS rose to $1.48 from $1.34 last year, beating the Street’s expectations for $1.41.
Lilly shares were 2.2% lower in afternoon trading.
“Lilly continued to deliver strong results in the third quarter, due in large part to the growth of our newer medicines and our ability to effectively manage costs while supporting global launches in highly competitive classes and funding our next generation of therapies,” said Chief Executive David Ricks. “Lily’s revenue growth is being driven by volume, not price, as more and more patients are benefiting from our recently launched medicines.”
Lilly said US revenue in the just-ended quarter was flat at $3.06 billion, as volume rose 5% and was offset by lower realized prices. Higher volume for its key growth medicines was offset by decreased volume for Cialis, which has lost patent exclusivity, and the withdrawal of its Lartruvo treatment. Lower realized prices were largely due to increased Medicare Part D gap funding requirements and higher contracted rebates.
Revenue outside the US rose 8% to $2.42 billion, fueled by a 12% increase in volume primarily from key growth products. The revenue increase was partially offset by foreign-exchange headwinds and lower realized prices, Lilly said.
This post was originally published on Health Opinion