Eli Lilly CFO: Solid Underlying Performance Despite FX Headwind

Eli Lilly and Co (NYSE: LLY) came out with mixed first-quarter earnings Thursday. EPS for the company, excluding items, came at $0.50 versus $0.67 reported for the same quarter last year.

Derica Rice, Eli Lilly CFO, was on CNBC recently to weigh in on the earnings.

Solid Underlying Performance

"We are off to a very good start to the year," Rice began.

"As far as animal health, recall that we acquired Novartis' animal health business that we closed January first. So, those results are in our first-quarter earnings. Obviously, if you look at last year, it wasn't in our business. So, that's what's driving that growth."

Related Link: BMO's Updated Eli Lilly Model Following Earnings

He continued, "Despite the FX headwind, we have very solid underlying performance trends. And through good cost containment efforts, we have really been able to leverage that to strong bottom-line performance and couple that with positive pipeline movements as well."

Reduction In Profit Forecasts

Rice was asked if the cut in full-year profit costs was solely because of the rising dollar. He replied, "Well on a non-GAAP basis, on an adjusted basis, we reaffirmed our guidance of EPS of $3.10 to $3.20. We did update our reported – our GAAP guidance, and this is really to reflect some restructuring charges as well as some acquisitions, business development deals that we consummated in the first quarter.

"We are able to in-license some immuno-oncology drugs as well as we also do a deal with Pfizer where we are able to move a phase III drug [and] begin to remove it from clinical hold through to the FDA. And we could resume phase III studies for that drug," Rice concluded.

 
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