Eli Lilly and Co. shares rose sharply Thursday morning after the company presented a better-than-expected 2017 forecast nearly a month after it had announced the failure of a key Alzheimer's treatment in testing.
Shares were up 4.4 percent, to $70.63 each, in late-morning trading
Indianapolis-based Lilly said Thursday that it expects adjusted earnings to range between $4.05 and $4.15 per share next year on revenue of $21.8 billion to $22.3 billion.
Industry analysts polled by FactSet expected earnings of $3.96 per share on $21.68 billion in revenue.
The outlook represents growth from the company's 2016 forecast for adjusted earnings of $3.50 to $3.60 per share on $20.8 billion to $21.2 billion in revenue.
The company expects that growth to come from new drugs and established products uch as the insulin Humalog.
The news is Lilly's attempt to shore up investor support after its devastating announcement last month that its experimental drug for Alzheimer's disease, called solanezumab, had failed in late stage clinical trials. Lilly has taken a $150 million charge in connection with the failure, and also announced plans to lay off several hundred people in its U.S. sales force.