LLY - Embedded Expectations Analysis - 2020 06 25
Eli Lilly and Company (LLY:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 26.8x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about their sales guidance, the impact of coronavirus, and their innovation pipelineSpecifically, management may lack confidence in their ability to control operating expenses, sustain revenue growth from stockpiling, and meet their EPS guidance. In addition, they may be concerned about continued new patient start declines in China and the impact of increasing Medicaid enrollment, new prescription trends, and inventory headwinds on their sales guidance. Furthermore, management may be downplaying concerns about coronavirus headwinds and their ability to maintain clinical trials and execute large-scale acquisitions. Also, they may be exaggerating the potential of baricitinib to dampen the cytokine storm present in coronavirus patients, and they may lack confidence in their ability to continue innovating their portfolio and launch galcanezumab in Europe
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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