Eli Lilly's 2008 EPS forecast beats expectations as firm prepares for patent loses

At its annual investors meeting, US drug major Eli Lilly reconfirmed its 2007 financial guidance and predicted 2008 earnings above Wall Street expectations.

In 2007, Lilly anticipates adjusted earnings per share in the range of $3.50 to $3.55, with reported EPS of between $2.74 and $2.79. Next year, the firm said it expects sales growth in the mid- to high-single digits with EPS of between $3.85 and $4.00, and low double-digit compound annual EPS growth. Analysts surveyed by Thomson Financial predicted adjusted full-year 2007 EPS of $3.52, and $3.81 per share profit in 2008. Commenting on Lilly's bullish forecast, Lehman Brothers analyst Tony Butler said that the Indianapolis-headquartered drugmaker is "showing the strength of [its] brands and cost or expense discipline."

According to John Lechleiter, Lilly's chief operating officer, sales in 2008 will be mainly driven by increased volume and income growth for several key drugs, including the antidepressant Cymbalta (duloxetine HCl), the antidiabetic Byetta (exenatide) injection, the anticancer drug Alimta (pemetrexed for injection), the leading insulin product Humalog, and the erectile dysfunction agency Cialis (tadalafil). He told investors that the company projects that seven of its products will achieve 2008 sales of $1.0 billion or more.