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Biotech / Medical : Eli Lilly -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (233)	5/28/1998 2:36:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 642

Lilly to Buy $2 Bln in Stock, Expects 20% Growth in EPS in 1998 Bloomberg News May 28, 1998, 9:37 a.m. PT Lilly to Buy $2 Bln in Stock, Expects 20% Growth in EPS in 1998 Indianapolis, May 28 (Bloomberg) -- Eli Lilly & Co., the maker of Prozac antidepressant and other drugs, said it will buy back up to $2 billion in stock and expects per-share earnings to increase about 20 percent this year. The Indianapolis-based company also said it expects sales to rise 15 to 20 percent this year. Last year, sales rose 16 percent to $8.52 billion. Lilly has been under pressure this year as sales of Evista, its new drug to prevent the bone-thinning disease osteoporosis, have fallen short of expectations. Lilly's stock has risen 43 percent in the past year, lagging the 58 percent return of the Standard & Poor's Drugs Index, because of concerns about Evista. Sales of the drug began in January. Lilly's $2 billion stock buyback, which includes $525 million in shares it's already repurchased, is expected to be completed this year. The stock may be retired or may be held in the company's treasury for use in equity compensation programs or other purposes, Lilly said. The company's shares rose 3/4 to 65 5/8 in midday trading. Lilly's market value is $72.6 billion, based on the number of shares outstanding reported as of April 30 in a regulatory finding. The company is expected to earn $1.89 a share this year, according to the average estimate of analysts polled by IBES International Inc. Estimates ranged from $1.85 to $2.00 a share. Last year, Lilly's profit before charges and a gain rose to $1.57 a diluted share from $1.30 in 1996. Earlier this month, Lilly said Randall Tobias will step down as chief executive in July and as chairman at the end of the year, five years after the 56-year-old executive moved from AT&T Corp. to take charge of the drugmaker. Sidney Taurel, 49, president and chief operating officer, will take over as CEO July 1 and become chairman when Tobias steps down. --Kerry Dooley in the Princeton newsroom (609) 279-4016/esk More News: LLY