Strong outlook
For FY2021, Eli Lilly expects revenues to range between $26.5-28 billion, including revenues of $1-2 billion from COVID-19 therapies. The revenue growth is expected to be driven by key products such as Trulicity, Taltz, Verzenio, Jardiance, Olumiant, Cyramza, Emgality, Tyvyt, and Retevmo, and also by COVID-19 therapies.
Revenues are expected to be negatively impacted by lower revenues for products that have lost patent exclusivity. In 2021, prices are expected to decline in the mid-single digits globally. In the US, prices are expected to decrease in the low to mid-single digits due to higher rebates while outside the US, the company expects prices to decline in regions like China, Japan and Europe.
GAAP EPS is expected to be $7.25-7.90 while adjusted EPS is expected to be $7.75-8.40 in fiscal year 2021.
Acquisitions
On Tuesday, Eli Lilly announced that it was acquiring Prevail Therapeutics Inc. (NASDAQ: PRVL) for $880 million. Prevail develops gene therapies for neurodegenerative diseases. This acquisition is expected to help Eli Lilly move into gene therapy with Prevail’s portfolio of assets and is expected to close in the first quarter of 2021.
Prevail’s pipeline includes gene therapies for Parkinson’s disease, Gaucher disease, dementia, amyotrophic lateral sclerosis (ALS), and other neurodegenerative disorders.
Dividend increase
On Monday, Eli Lilly announced a 15% increase in its quarterly dividend to $0.85 per share, or $3.40 on an annualized basis. The dividend is payable on March 10, 2021 to shareholders of record as of February 12.
Pipeline
Eli Lilly is broadening its product offerings in oncology. Earlier this month the company reported positive data from its trials for Verzenio in the treatment of breast cancer and its BTK inhibitor LOXO-305 for the treatment of chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL). The company’s COVID-19 therapies are also expected to drive growth in the coming year.
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