Eli Lilly Boosts 2018 Outlook on Changes to U.S. Tax CodeBy
Eli Lilly & Co. is following its fellow drugmakers promising benefits from the U.S. tax revamp, boosting its 2018 forecast that it announced only last month.
The Indianapolis-based company increased its adjusted earnings expectations to $4.81 to $4.91, which it initially gave in December before the new changes to taxes were signed into law. Previously, the drugmaker had estimated $4.60 to $4.70 a share in earnings for the year.
Lilly said it expects to incur a one-time $3.6 billion tax related to the rewriting of the tax code, and that the changes will free up more than $9 billion in cash. The company estimates its 2018 tax rate will be 18 percent.
Lilly’s fourth-quarter adjusted per-share earnings of $1.14 beat analysts expectations by 7 cents, driven by sales of drugs like insulin drug Humalog, cancer treatment Alimta and osteoporosis therapy Forteo.