Eli Lilly shares were falling Thursday after the drugmaker significantly slashed its full-year earnings guidance as a result of its deal spree.
Lilly reported earnings of 10 cents a share on revenue of $9.5 billion in the third quarter. Analysts surveyed by FactSet has expected the company to post a loss of 18 cents a share on revenue just shy of $9 billion. What’s disappointing was the outlook. Lilly slashed its guidance for full-year earnings to a range of $6.50 to $6.70 a share, having raised its outlook in August to a range of $9.70 to $9.90.
The company said the reduced outlook was largely due to in-process research and development charges acquired in the third quarter as a result of Lilly’s deals to buy of DICE Therapeutics, Versanis Bio, and Emergence Therapeutics. Shares in Lilly tumbled 1.7% in premarket trading Thursday, having previously hovered 2% higher before earnings on the back of strong results from peer Novo Nordisk .