Eli Lilly stock popped Wednesday after the pharma giant raised its full-year outlook, citing a recent deal with the U.S. government for its Covid antibodies.
XFor the year, Eli Lilly (LLY) now expects $28 billion to $28.3 billion in sales. That includes about $2.1 billion in sales of its antibody-based treatment for Covid. The company says it also benefitted from changes to China's list of reimbursed drugs.
The sales outlook topped analyst forecasts for $27.6 billion. Lilly also expects to earn $8.15-$8.20 per share, minus certain items. Analysts projected adjusted earnings of $8.02 a share.
On today's stock market, Eli Lilly stock surged 10.4% to 275.28.
Eli Lilly Stock: 20 New Drugs In 10 Years
Alongside the booster guidance, Lilly reiterated its pledge to launch 20 new drugs over the decade that began in 2014. So far, the company has launched 16 new medicines and has plans for five more over the next two years.
Among those, Lilly noted donanemab, a possible rival to Biogen's (BIIB) Alzheimer's treatment, Aduhelm. Eli Lilly stock investors are closely watching donanemab, which clears built-up beta amyloid plaque in the brain faster than Biogen's drug. Beta amyloid is a flagship of Alzheimer's disease, though Biogen still has to prove that clearing it leads to a cognitive benefit.
The company also pointed to experimental drugs for diabetes, cancer, eczema and ulcerative colitis. On Tuesday, the ulcerative colitis drug, mirikizumab, outperformed a placebo in a Phase 3 study. After a year, more mirikizumab patients achieved remission than those who received a placebo.
For 2022, Lilly expects $27.8 billion to $28.3 billion in sales and adjusted profit of $8.50-$8.65 per share. The projection beat Eli Lilly stock analysts' call for $27.77 billion in sales and income of $8.13 per share, according to FactSet.
But the company called for "significantly lower" sales of its Covid antibodies. It also expects sales of cancer drug Alimta to slow after its patent expires. Instead, growth will be driven by treatments for diabetes, cancer, migraine and autoimmune diseases.
Strong Run In 2021
Eli Lilly stock has run up in 2021. Shares are currently forming a cup-with-handle base and a buy point at 271.21, according to MarketSmith.com.
Shares also have strong ratings on IBD Digital. Eli Lilly stock has a Composite Rating of 94, which puts shares in the leading 6% of all stocks in terms of fundamental and technical measures.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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