Eli Lilly and Company (LLY) shares declined 0.02% in after-hours on Wednesday, December 29, 2021, and closed the daily trading at $278.36. In the regular trading session, LLY’s stock gained 0.72%. LLY shares have risen 67.14% over the last 12 months, and they have moved up 5.11% in the past week. Over the past three months, the stock has gained 20.86%, while over the past six months, it has soared 21.31%.
Let’s have a brief discussion about its recent news.
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LLY demonstrated significant skin improvement
On December 21, 2021, Eli Lilly and Company’s (LLY) reported that its Lebrikizumab, an IL-13 inhibitor, significantly improved disease severity when combined with topical corticosteroids (TCS) in people with moderate-to-severe atopic dermatitis (AD) met all primary and key secondary endpoints in third pivotal Phase 3 trial.
The primary endpoints were clear (0) or almost clear (1) skin with a reduction of at least two points from baseline and at least a 75 percent change from baseline in the Eczema Area and Severity Index (EASI) score and were achieved both in Week 16.
All key secondary endpoints were also achieved for Lebrikizumab in combination with TCS.
LLY business and financial updates
On December 15, 2021, Eli Lilly and Company (LLY) provided extensive updates across its research and development (R&D) programs to highlight the company’s strong pipeline and potential for future growth. The company also provided key information, including pipeline updates along with 2022 financial guidance and updated 2021 guidance.
The company is on track to meet its goal of launching 20 new medicines over the 10 years from 2014 to 2023. Lilly has delivered 16 new medicines over the last eight years and plans to launch five more medicines over the next two years.
Update about Diabetes program
FDA and EMA have accepted Lilly’s New Drug Application and Marketing Authorization Application, respectively, for tirzepatide for the treatment of adults with type 2 diabetes. The company has also submitted its application for tirzepatide approval in Japan and six additional markets.
Lilly has established a renewed presence in oncology, by the acquisition of Loxo Oncology. The company’s oncology portfolio, including Verzenio®, Retevmo®, and pirtobrutinib, has the potential to deliver meaningful growth for the decade.
The company is looking to submit an application for pirtobrutinib, seeking accelerated approval in mantle cell lymphoma, with expectations to complete the submission in 2022 and regulatory action anticipated in early 2023.
Updated 2021 Financial Guidance
- The company has revised its financial guidance and now expects EPS in the range of $6.18to $6.23 on a reported basis and $8.15 to $8.20 on a non-GAAP basis.
- Revenue is expected in the range of $28.0 billion to $28.3 billion compared to previous estimates of $27.2 billion to $7.6 billion.
- Gross margin as a percent of revenue is still expected to be approximately 75 percent on a reported basis and approximately 78 percent on a non-GAAP basis.
- Marketing, selling and administrative expenses are still expected to be in the range of $6.2 billion to $6.4 billion.
- Research and development expenses are still expected to be in the range of $6.9 billion to $7.1 billion.
LLY 2022 Financial Guidance
- The company is expecting EPS in the range of $8.00 to $8.15 on a reported basis and $8.50 to $8.65 on a non-GAAP basis for Fiscal 2022.
FY 2022 revenue is expected to be in the range of 27.8 billion and $28.3 billion.
- The gross margin is expected to be approximately 78 percent on a reported basis and 80 percent on a non-GAAP basis.
- Marketing, selling and administrative expenses are expected to be in the range of $6.4 billion to $6.6 billion.
- Research and development expenses are expected to be in the range of $7.0 billion to $7.2 billion.
We have no recent news which could justify its mixed performance on Wednesday. The company has recently provided a strong business and financial update and we can expect it to surge in the coming trading days.