Shares of Eli Lilly and Co. slipped in late-morning trading Wednesday after the drugmaker announced fourth-quarter earnings that missed Wall Street expectations and dropped its forecast for 2019.
Lilly says it revised its outlook due to the recently announced failure of the cancer treatment Lartruvo in a late-stage clinical trial and a pending acquisition.
Lilly announced last month that it would spend about $8 billion in cash to buy Loxo Oncology, as the drugmaker bulks up on cancer treatments that target certain gene abnormalities.
The company now expects 2019 adjusted earnings to range from $5.55 to $5.65 per share, down from a forecast it made in December for between $5.90 and $6 per share.
In the fourth quarter, the maker of the insulin Humalog posted $1.13 billion in net income, with earnings adjusted for one-time gains and costs of $1.33 per share. Revenue climbed 5 percent to $6.44 billion.
The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.36 per share.
Shares of Eli Lilly and Co. slipped $1.55 to $118.87 in early trading. The company's stock has climbed 4 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 9 percent. The stock has climbed 55 percent in the last 12 months.