Advertisement
UK markets closed

  • FTSE 100

    7,895.85
    +18.80 (+0.24%)
     

  • FTSE 250

    19,391.30
    -59.37 (-0.31%)
     

  • AIM

    745.67
    +0.38 (+0.05%)
     

  • GBP/EUR

    1.1607
    -0.0076 (-0.65%)
     

  • GBP/USD

    1.2370
    -0.0068 (-0.55%)
     

  • Bitcoin GBP

    51,704.07
    +391.18 (+0.76%)
     

  • CMC Crypto 200

    1,368.88
    +56.26 (+4.29%)
     

  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     

  • DOW

    37,986.40
    +211.02 (+0.56%)
     

  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     

  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • HANG SENG

    16,224.14
    -161.73 (-0.99%)
     

  • DAX

    17,737.36
    -100.04 (-0.56%)
     

  • CAC 40

    8,022.41
    -0.85 (-0.01%)
     
Property:

11 beautiful homes with glorious garden rooms

Investing in a home with a garden room will enable you to enjoy your outside space whatever the weather

Lilly (LLY) Makes Leadership Changes to Executive Positions

Zacks Equity Research
Updated

Eli Lilly and Company LLY announced a number of leadership changes in order to focus on bringing newer drugs to the market. In this regard, the company promoted Josh Smiley to the post of Chief Financial Officer (CFO) effective Jan 1, 2018. In June 2017, the company announced that its current CFO, Derica Rice, would retire at year-end.

The company also promoted Dan Skovronsky to senior vice president for the Science And Technology and President of Lilly Research Labs. The change will be effective June 1, 2018.

Also, Myles O'Neill has been promoted to Senior Vice President and President of Manufacturing Operations while Aarti Shah, who is a Senior Vice President and Chief Information Officer, has been offered the post of an executive officer.

All four of them will become a part of Lilly's executive committee. In addition to these appointments, the company also announced two retirements of Maria Crowe, President of Manufacturing Operations, who will retire in December after 35 years of service. Jan Lundberg, Vice President for Science and Technology and President of Lilly Research Labs, will retire at the end of May 2018 after eight years with Lilly.

ADVERTISEMENT

So far this year, Lilly’s share price has increased 16.3% compared with the industry’s gain of 16.4%.

We note that the company has made these changes in order to focus on new medicines in diabetes, cancer, immunology, neurodegeneration and pain. Last month, the company also announced some restructuring initiatives in order to streamline its operations so that it can focus on developing new medicines and improve its cost structure. It announced plans to reduce its global workforce by approximately 3,500 positions. These initiatives are expected to amass annualized savings of approximately $500 million, beginning 2018.

Furthermore, it is also closing down several sites, a plant in Iowa, a R&D office in New Jersey and a R&D center in China to save costs.

However, the company faces its share of challenges. Several key drugs in its portfolio like Zyprexa and Cymbalta are facing generic competition due to loss of exclusivity. Meanwhile, blockbuster drug, Alimta’s U.S. sales are also being affected by the entry of immuno-oncology agents in the market while outside the United States sales are already being hurt due to loss of exclusivity in several countries.

Other headwinds include competition from immuno-oncology agents as well as recent high-profile pipeline setbacks. Also, Lilly’s Animal Health segment did not do too well in the first half due to worldwide competitive pressure.

Eli Lilly and Company Price

Eli Lilly and Company Price | Eli Lilly and Company Quote

Zacks Rank & Stocks to Consider

Lilly carries a Zacks Rank #3 (Hold). Some better-ranked stocks in health care sector include Regeneron Pharmaceuticals, Inc. REGN, Biogen Inc. BIIB and Aduro BioTech, Inc. ADRO. While Regeneron sports a Zacks Rank #1 (Strong Buy), Biogen and Aduro carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Regeneron’s earnings per share estimates have increased from $13.84 to $14.99 for 2017 and from $15.79 to $16.65 for 2018 over the last 60 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 10.11%. The share price of the company has increased 21.8% year to date.

Biogen’s earnings per share estimates have moved up $21.37 to $21.42 for 2017 and from $23.11 to $23.23 for 2017 over the last 60 days. The company delivered positive earnings surprises in all the trailing four quarters, with an average beat of 6.41%. The share price of the company has increased 10.3% year to date.

Aduro’s loss estimates per share have narrowed from $1.36 to $1.29 for 2017 over last 60 days. The company came up with positive earnings surprises in two of the trailing four quarters, with an average beat of 2.53%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
 
Biogen Inc. (BIIB) : Free Stock Analysis Report
 
Aduro Biotech, Inc. (ADRO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research