The company hopes revenue growth will be driven by its drug portfolio, animal health products and sales in Japan and the emerging markets, in particular China.
John C Lechleiter, Chairman, President and CEO, said the company has “made substantial progress in recent years” and he expects “2013 to continue that trend.”
Total operating expenses within the next 12 months are expected to be “flat to slightly decreasing” as Lilly continues to control expenses and improve productivity. It expects to spend between $7.1bn to $7.4bn on marketing, selling and administrative expenses and a further $5.2bn to $5.5bn on research and development.
Lilly expects other income and deductions to be somewhere in the range of $340 million and $490 million of net income in 2013. Operating cash flows of around $900 million will be in place to fund potential business development, pay company dividends and complete its share repurchasing programme.
“We are replenishing and advancing our pipeline, which now has 13 potential new medicines in Phase III testing,” said John C Lechleiter. “We are investing to drive growth in key currently marketed brands and in our counter-cyclical growth areas; and we continue to make productivity gains across our business to fund the R&D necessary to fuel our future growth, recapitalise our physical assets, maintain our dividend and support our share repurchase programme.”
The Indianapolis-based company also predicted it was “on track” to meet medium term financial targets. “From now through 2014, on an annual basis we still expect revenue to be at least $20 billion, net income to be at least $3 billion, and operating cash flow to be at least $4 billion,” said Derica Rice, Lilly Executive Vice President, Global Services and Chief Financial Officer.