LLY - Embedded Expectations Analysis - 2019 07 22
Eli Lilly and Company (LLY:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 15.0x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management has concerns related to future growth of their drug portfolio, their ability to meet guidance, and headwinds related to proposed regulation.Specifically, management may lack confidence in the continued growth potential of Trulicity, Emgality, and Tirzepatide, and they may be concerned about the Elanco divestiture. Furthermore, management may be downplaying their issues with the FDA approval process for Empagliflozin, and appear to be concerned about greater than expected headwinds related to upcoming Medicare and ACA regulation. Finally, they may be concerned about their ability to meet their EPS targets for 2019, as well as their full-year margin goal.
Eli Lilly and Company discovers, develops, manufactures, and markets products in a single business segment: human pharmaceutical products. The company's human pharmaceutical products include: diabetes and other endocrinology products, immunology products, neuroscience products, oncology products, and other products. The company's diabetes and other endocrinology products include: Baqsimi? and Basaglar?. The company's immunology products include: Olumiant? and Taltz?. The company's neuroscience products include: Cymbalta? and Emgality?. The company's oncology products include: Alimta?, Cyramza?, Erbitux? and Verzenio?. The company's other products include: Cialis?.
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